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IMF Loan Much Cheaper Than He Expected Says Advisor Hafeez Shaikh

IMF Loan Much Cheaper Than He Expected Says Advisor Hafeez Shaikh

Hussain Saeed

Adviser to the Prime Minister on Finance, Hafeez Shaikh, on Saturday said that the International Monetary Fund (IMF) loan programme that Pakistan has entered into is going to cost less than most people expected.

The adviser on finance acknowledged that the programme was being debated upon heavily in the media as well as by the country’s intelligentsia.

“The IMF is an organisation which has been formed
solely to assist member countries which are faced with financial
difficulties,” he said during a press conference in Islamabad. “They have
never given money to countries that were not capable of paying back their
loans, or creating unsuitable plans that send markets into a recession, just
for the benefit of the West.

He further stated, “The programme we have obtained has a
magnitude of $6bn and is spread over 3 years. The good thing about it is that
the rate of borrowing is much lower than other programmes. The interest rate is
50 per cent. Completely manageable.”

Shaikh said that entering the programme would “send a
good signal to the international community that Pakistan is willing to bend
over backwards just to get some money. They will be ready to investment more
into our economy as they know they can get anything they need from us.”