*ISLAMABAD – Pakistan will decide on whether to seek a bailout from theInternational Monetary Fund or friendly nations such as China by the end ofSeptember, according to Asad Umar, the finance minister-in-waiting of theincoming government.*
Asad Umar’s Pakistan Tehreek-i-Insaf (PTI) party is due to be sworn in togovernment around the middle of August and will immediately face a brewingeconomic crisis.
Pakistan’s foreign exchange reserves have plummeted over the past year andhave been kept afloat by lending from China, which has deepened economicand diplomatic ties after pledging $57 billion in separate infrastructureloans for Pakistan. The rupee currency has been devalued four times sinceDecember.
Umar said he needs to see the latest government figures before he canspeculate on the size of any bailout package, which analysts expect toexceed $10 billion. However, he added “no option, including an IMFprogramme, can be ruled out”.
“We have to evaluate all options in parallel,” Umar, 56, told reporters inIslamabad. “By end of September, I should be able to sit here and tell youthis is the way we are going.”