ISLAMABAD: China has approved rollover of $ 2 billion State Administration of Foreign Exchange (SAFE) deposits for year. “Yes,” Finance Minister Ishaq Dar replied to publication when asked about getting rollover of $ 2 billion SAFE deposits.

It was one of requirements of IMF for getting rollover of Chinese SAFE deposits for meeting external financing needs in order to move towards striking much-awaited staff-level agreement.

There are nine tables under Memorandum of Economic and Financial Policies that require to be filled. One of tables is related to Net International Reserves as an indicative target, which cannot be fulfilled without incorporating external financing needs of programme period till end of June 2023.

IMF has asked Pakistan to bridge gap of $ 6 billion is simply an attempt to ensure its credibility. Non-materialisation may result in Pakistan sliding into default.

Fund was forced to put forth this condition on negotiating table largely because representatives of Gulf countries on Executive Board had made commitments before approval of seventh and eighth reviews for providing financial assistance to Islamabad in different forms. These included additional deposits and investments. Now, all eyes are on Kingdom of Saudi Arabia, UAE and Qatar to bail out Pakistan’s struggling economy.

Published in The Daily National Courier, March, 25 2023

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