KARACHI: Finance Minister Ishaq Dar gave go-ahead for raising $ 2 billion from overseas Pakistanis to help country navigate current economic quagmire.

Speaking at conference ‘Defining roadmap for Islamisation of Pakistan’s economy’, Saylani Welfare International Trust Chairman Bashir Farooqi sought finance minister’s approval for voluntarily raising $ 2 billion from overseas Pakistanis using charity’s global welfare network. Dar, who was available via video conference link, issued directives to State Bank of Pakistan to document raise of proposed debt.

“Transaction should be transparent, well documented and there should be well-defined method to raise debt,” said finance czar. Farooqi said debt will be raised for five years and it will be interest-free and funds will be handed over to government by trust.  “Government may use it to clear import goods stuck at Karachi Port due to low availability of foreign exchange reserves at present”, added trust’s chairman.

Although an emergency IMF mission has arrived in Pakistan, there are no guarantees amid growing number of headaches after November’s suspension of disbursements from current package, which was topped up to $ 7 billion after floods. A devaluation of 15% in rupee and rise last week in fuel prices could help eliminate some key snags, particularly as tax measures are apparently imminent. Yet pressure is building as bailout programme cannot be extended beyond June and elections loom.

Published in The Daily National Courier, February, 03 2023

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