Pakistan fulfills three key IMF conditions
2 July 2010
Pakistan has successfully met the IMF’s three primary targets: zero budgetary borrowing, Net Domestic Assets (NDA) and Net Foreign Assets (NFA) set for the quarter ending June 30, 2010.
The government has achieved one of the IMF’s primary conditions to cap its budgetary borrowing from the central bank at Rs 1,130 billion. Sources say that foreign inflows worth $710 million received during last three days of last fiscal year helped the government to meet the net zero budgetary borrowing condition.
According to sources, the State Bank of Pakistan comfortably met the IMF’s two major targets of NFA and NDA for the end of June.
During the last fiscal year the federal government fulfilled the IMF target of net borrowing as overall stocks of the government’s budgetary borrowing amounted to Rs 1,130 billion as of June 30, 2009. Therefore the government was required to sustain these stocks at the same level by end of this fiscal year.