CONSEQUENT upon the approval of
$6.7 billion loan by the International Monetary Fund (IMF) to Pakistan, it is
being said by the government that this is not a loan liability as it intends to
assist them in repaying the old loan.
With the first installment coming in, the total external account liability is
going to reflect an enhanced liability.
Moreover, interest payment too on this account will tend to increase the overall
external account numbers.
The loan sanctioned by the International Monetary Fund is being construed as a
positive signal without realizing that strings too are attached therewith and
which will be monitored by the IMF on a quarterly basis.
Any lapse on fulfilling the given targets/criteria may again put us on the back
foot.