SBP offers to bail out Balochistan govt

State Bank of Pakistan Governor Dr Shamshad Akhtar has expressed her resolve to mitigate the financial difficulties of the Balochistan government by offering a financial relief package.

The financial relief package, which will be subject to approval by the Central Board of Directors of SBP, was offered by Dr Akhtar during a recent meeting with Balochistan CM Nawab Mohammad Aslam Raisani.

The package aims to provide a breathing space to the Balochistan government by allowing it to pay its overdraft within a period of six years in the form of monthly installments.

Besides, the existing limit of Ways and Means Advances would be enhanced to Rs 2 billion from Rs 1.7 billion.

Dr Akhtar has, however emphasized that the Balochistan Government can truly reap the benefits of facilitation package if it imposes strict financial discipline and manages its cash inflows from other resources such as royalties etc. It may be mentioned here that the financial position of the Balochistan government has been deteriorating since November 2003.