IMF increases Pakistan loan to $11.3bn WASHINGTON, The International Monetary Fund on Friday increased its loan to Pakistan by $3.2 billion to a total of $11.3 billion and said some of the money would be available immediately as the government deals with increased security costs.The IMF said Pakistan's economy is stabilizing but the outlook for 2009/10 remains difficult, with the government needing to assist almost three million people displaced by fighting between security forces and Taliban militants. The IMF said it would immediately release $1.2 billion to Pakistan under an IMF economic program, first agreed in November 2008 to avert a balance of payments crisis and shore up reserves. The IMF said a portion of the new funds will be used to finance priority spending by the government until the disbursements of donor support pledged for 2009/10 are received. The remainder will go toward bolstering Pakistan's foreign exchange reserves to ensure the economy is protected from such shocks as a surge in global oil prices. IMF mission chief to Pakistan, Adnan Mazarei, said it was critical that donors deliver the aid without any delays. Still, he said key economic targets under the IMF program had been met, including lower inflation, despite the difficult political and security conditions in the country. In addition to the new financing, Pakistan would be eligible for another $1 billion in IMF resources under a special allocation of $250 billion worth of Special Drawing Rights (SDRs) for the fund's 186 member countries. The allocation of SDRs, an international reserve asset and the fund's internal unit of account, was agreed to by a Group of 20 leaders' summit in April to help countries weather the global financial crisis. But Mazarei said it was important to boost low tax revenue in Pakistan and urged the government to quickly implement plans for Value Added Tax and broaden tax administration reforms. Much of Pakistan's tax burden falls disproportionally on the manufacturing sector. "These reforms will make the economy less vulnerable, provide the steady flow of resources needed to reduce poverty and develop basic infrastructure, and strengthen the government's ability to deal with the pressing needs of the population, which are now compounded by the large number of (internally displaced people)," the IMF said. The IMF said unresolved problems in the energy sector were undermining Pakistan's growth potential and were a major burden on public finances. Mazarei said Pakistan had recently reached an agreement with the World Bank and Asian Development Bank on a set of measures to help improve finances of the electricity sector through increases in electricity prices. He said by August next year electricity tariff differential subsidies would be eliminated, making additional fiscal resources available to the government. Mazarei said fiscal discipline was a concern in Pakistan, with budget slippages caused by unexpected spending for refugees and security. In addition, there were shortfalls in revenues and excess spending by provinces, he added. "Looking forward we're asking the authorities to maintain fiscal discipline," he said, adding that the government had put in place measures to ensure more discipline in provinces. The IMF waived a performance target under the program related to increased supervision over banks by the central bank. Mazarei said the authorities have committed to implement the measure by Sept1. Student loan Scheme in Pakistan
National Bank of Pakistan has invited applications from eligible students for grant of loans. Application form may b
e downloaded here and also at the designated branches of NBP. All the interested students are required to fill up the application form and submit to VU for verification on well before the last date which is February 28, 2009. The same form will be returned to the student after necessary attestations for onward submission to NBP designated branches by the students. Students are advised to read the instructions carefully given with the application form and attach all the documents as required by the bank. Virtual University has to certify only that he/she is a bonafied student at this university while the application will be processed by the bank to decide whether or not a loan is to be granted.
FACILITY OF INTEREST-FREE LOAN TO THE STUDENTS OF PUBLIC SECTOR
UNIVERSITIES AND INSTITUTES
The State Bank of Pakistan had launched an interest-free loan scheme for students of public sector Universities, Institutes Colleges in February, 2001. The objective of scheme was to provide financial assistance to the meritorious students who obtain at least 70 % marks in the last examination and are unable to pursue their studies within Pakistan due to financial constraints. Such loans are available to students for tuition fee, purchase of text books/ reference books and boarding expenses.
The National Bank of Pakistan has devised a procedure for inviting applications from students and its processing for the grant of loans. The same is available in their designated branches in all major cities along with prescribed application form.
In its earlier notification of the National Bank of Pakistan, some Universities established in the public sector were not listed in this scheme. The case was taken up by the HEC with the Sate Bank and followed up vigorously. It has now been decided by the State Bank to include all public sector Universities and Institutions recognized by HEC for the facility of interest-free loan for the students.
Higher Education loan Schemes:
HEC BENIFIT 2009
The HECS-HELP benefit aims to encourage graduates of maths or science undergraduate courses of study to take up employment in specified occupations, and to encourage early childhood education teachers to work in specified locations including rural and regional areas, Indigenous Australian communities and areas of socio-economic disadvantage.
The benefit is not a cash payment. It is a benefit which you need to apply for annually to reduce your compulsory HELP repayment or accumulated HELP debt. For eligible maths or science graduates, the benefit of up to $1,500 in the 2008–09 income year will reduce:
For eligible early childhood education teachers, the benefit of up to $1,600 in the 2008–09 income year will reduce:
If you are an early childhood education teacher, you may also be entitled to the reduction in your accumulated HELP debt where:
you successfully applied to defer your compulsory HELP repayment for the year.
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