brand logo

Pakistani loan discussions on hold

03 Apr 2022

  • Growing political instability in Pakistan jeopardises SL’s request 
  The $ 200 million credit line sought from Pakistan is in possible jeopardy as discussions with the Sri Lankan Government have been halted at the moment due to the political crisis in Pakistan, Trade Minister Dr. Bandula Gunawardena said. Speaking to The Sunday Morning Business, Gunawardena said that the relevant Pakistani officials who were at the discussion table for the credit line had halted discussions due to the political crisis in their country. The political crisis started in Pakistan earlier this month after the Opposition announced it would bring a no-confidence motion against Prime Minister Imran Khan’s Government amid accusations that he had mismanaged the nation’s economy. The Muttahida Qaumi Movement Pakistan (MQM-P) party, a major political force in the ruling Pakistan Tehreek-e-Insaf (PTI)-led coalition Government, said that they would be leaving the Government. With MQM-P’s exit, the ruling alliance is now left with 164 votes. Khan needs 172 votes in the 342-seat National Assembly to defeat the no-confidence motion moved by the Opposition, whose numbers have swelled to 177, with nearly two dozen PTI legislators deserting Khan. Gunawardena said the $ 200 million credit sought to import essential food, rice, cement, and medicine, would have been finalised by now if not for the current political crisis in Pakistan. The Trade Minister visited Pakistan in January 2022 to meet Prime Minister Imran Khan where it was decided to increase bilateral trade relations through making optimal use of the Pakistan-Sri Lanka FTA and also seek financial assistance from Pakistan.  Further, the Minister said that the External Resources Department at the Treasury was currently having discussions with the Australian Government on the $ 200 million line of credit from Australia to buy lentils, milk powder, and other food products. On Monday (28) the Times of India reported that Sri Lanka had sought a second $ 1 billion credit line from India after the initial $ 1 billion that was pledged for essentials and fuels. – By Imesh Ranasinghe  


More News..