960409

$420m balance of payment surplus expected in 96-97

Aid to Pakistan

Consortium countries

to be briefed today

NADEEM MALIK

ISLAMABAD: With total official commitments of 3.272 billion dollars, including consortium aid of 2.67 billion dollars, Pakistan's overall balance of payments is expected to be surplus by 420 million dollars for the year 1996-97.

According to the official document, prepared to brief the envoys of Aid-to-Pakistan Consortium's member countries on Wednesday, a reserve build-up of 373 million dollars is expected in 1996-97.

At the last Consortium meeting on April 20-21, 1995, Pakistan had made an aid request for 2297 million dollars, for 1995-96, comprising 2093 million dollars as project aid and 204 million dollars as non-project aid.

As far as the disbursements from Consortium sources were concerned, these were expected at 1947 million dollars.

The overall commitments from Consortium countries in 1995-96 are estimated at 2605 million dollars, 13.4 percent more than the aid requested.

Estimated disbursements from these countries during the year stand at 1697 million dollars, 12.8 percent less than the expectations, largely in the case of non-project aid.

With the envisaged build-up of foreign exchange reserves of 373 million dollars, the total foreign capital requirements for 1996-97 amount to 4556 million dollars.

Pakistan expects total official commitments of 3272 million dollars, including 2670 million dollars from Consortium, 587 million dollars from non-Consortium and 15 million dollars as relief assistance for Afghan refugees.

Gross disbursements during 1996-97 are projected at 2700 million dollars of which project aid disbursements from the pipeline and fresh commitments will aggregate 2155 million dollars.

Disbursements of non-project aid from the pipeline and fresh commitments are projected at 530 million dollars, which will comprise 375 million dollars for food assistance and the remaining 155 million dollars for non-food aid under programme assistance from Asian Development Bank (Trade and Industry Programme Loan) and other commodity type loans. Relief assistance for Afghan refugees has been projected at 15 million dollars.

Pakistan's aid request to Consortium has been projected to 2.67 billion dollars, comprising 2.465 billion dollars as project assistance and 205 million dollars as quick disbursing commodity aid.

CONSORTIUM: COMMITMENTS AND DISBURSEMENTS ($ Million)

1995-96 Project Aid Non-Project Total

Aid Request 2093 204 2297

Expected 1830 117 1947

Disbursements

Estimated 2543 62 2605

Commitments

Estimated 1675 22 1697

Disbursements

1996-97 - - -

Aid Request 2465 205 2670

Disbursements 1745 155 1900

Tanvir Zahid adds from Lahore: The Deputy Chairman of the Planning Commission Qazi Alimullah will initiate discussion on poverty assessment and social sector, highlighting the policies and programmes of the federal government in this respect.

Resident representative of the United Nations Development Programme based in Islamabad will also be presenting a report in the briefing session.

Advisor to the Prime Minister for Finance and Economic Affairs will also deliver concluding remarks after hearing the views of the envoys of Aid to Pakistan Consortium member countries and organizations.

Participants of the briefing session will be provided copy each of the "Memorandum for Pakistan Consortium 1996-97" and "Social Action Programme - Report to Pakistan Consortium 1996-97" besides what V.A. Jafarey and Qazi Alimullah have to brief them about.

Aid to Pakistan Consortium meeting is scheduled to be held in Paris on April 21 and 22 and Pakistan delegation is likely to be headed by the advisor to the Prime Minister for Finance and Economic Affairs and also include Deputy Chairman of the Planning Commission and Secretary Economic Affairs Division.