Friday, April 17, 2009

Pakistan receives two billion dollars to support the economy.

U.S. and Japan will provide financial assistance to Pakistan in the overall size of two billion dollars to fight extremism and support the economy. This writes the newspaper The Wall Street Journal. According to Taro Aso, Prime Minister of Japan, which agreed to provide Pakistan a billion dollars, the funds required to Pakistan in the first place for the implementation of economic reforms.
The decision on granting of loans was made at the Conference of Donor Countries Pakistan (Pakistan Donors Conference), held in Tokyo on 17 April 2009. The Government of Pakistan will be Japanese and American loans in several tranches over the next two years. As the newspaper explained, the President of Pakistan Asif Ali Zardari (Asif Ali Zardari), counted on the financial assistance in the amount of six billion dollars.
Later it became known that the outcome of the conference by participating countries pledged to give Pakistan means a total of five billion dollars. In particular, Saudi Arabia declared its readiness to transfer the country's $ 700 million, the EU - 640 million dollars, and Iran - over 300 million dollars. That was reported by Bloomberg.
Note that Pakistan receives regular financial support not only from the major countries of the world, but also from international financial institutions. Thus, at the end of 2008 the country had received 3.6 billion dollars from 7.6 billion International Monetary Fund. In addition, in 2008, Japan provided 480 million dollars to Pakistan and the U.S. promised the country each year to allocate 1.5 billion dollars over five years.
Borrowings are required to Pakistan in particular, to improve certain financial indicators, fell with the global financial and economic crisis. Pakistani authorities, as required by the IMF, it is necessary to reduce the balance of payments deficit with the current seven to four per cent of GDP.

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