KARACHI: With commitments of around $10 billion at the Geneva Conference, the risk of default has further reduced and the market expects some stability in the foreign exchange market.
Malik Bostan, President of the Pakistan Forex Association, said the government had successfully presented its case at the Geneva Conference titled ‘Climate Resilient Pakistan’, resulting in international financial institutions and other countries pledging more than 10 billion dollars.
At the Geneva Conference held on January 9, Pakistan received pledges of around $10 billion for the recovery and rehabilitation of flood-affected populations and areas. This includes $4.2 billion from the Islamic Development Bank over three years, $1 billion from Saudi Arabia, the World Bank $2 billion, the ADB $1 billion, the European Union €0.5 billion, USAID in 100 million dollars, Japan 77 million dollars and Germany 84 million euros.
Bostan said these pledges are more than expected and as these pledges mature, the ongoing currency crisis will ease. He said these inflows will also help control volatility in the foreign exchange market, apart from the stability of the exchange rate.
He said that according to information a meeting was also held with the IMF delegation on the sidelines of the Geneva Conference and if it is successful then the country will receive another billion as an installment of the Extended Fund Facility (EFF) of the IMF program.
Bostan said that as some countries have pledged healthy funds for Pakistan, there is a need to make efforts to mature these commitments on time so that we can overcome the ongoing foreign exchange crisis.
He appreciated the efforts of Prime Minister Shehbaz Sharif and Finance Minister Ishaq Dar for getting over $10 billion in commitments from the International Financial Organization and friendly countries.
“This is a great achievement and the country’s economy will be on the right track as there is no doubt that Pakistan is one of the major countries affected by climate change,” he said.