ISLAMABAD – Pakistan is seeking USD 8 billion from the InternationalMonetary Fund (IMF) to bail itself out from a severe balance-of-paymentscrisis that threatens to cripple the country’s economy.
With the generous Chinese assistance, Pakistan has so far received a totalof USD 9.1 billion in financial aid packages from friendly countries duringthe current fiscal year.
Finance Minister Asad Umar said earlier this month that a mission of theInternational Monetary Fund (IMF) would visit Islamabad soon after thespring meetings of the World Bank Group, which includes the IMF, and anagreement should be signed by the end of this month.
The visit of the IMF mission to Islamabad for finalising the bailoutpackage may be delayed as both sides are still engaged in an “intensediscussion” on the final details of the deal.
“So, the IMF mission is now more likely to visit Islamabad in May, notApril.
The finance minister, who led the Pakistani delegation at the meetings,went to New York on Friday but his team, which includes senior officials ofhis ministry and other government agencies, stayed in Washington forfurther talks.
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Umar during a press conference on Thursday said the two sides had “more orless, reached an understanding” on the bailout package and “in a day ortwo, we hope to reach a full agreement”.
An official familiar with the Pakistan-IMF talks said, “Islamabad stillhopes to conclude the agreement before June, as they believe the bailoutpackage would help budget prospects.”
If concluded, it would be the 14th IMF aid package for Pakistan.Thesticking points, however, are the demands for market-determined exchangerates and sharing details of Chinese loans which Pakistan is reluctant todo so.
The sources said that IMF officials were also seeking details of theChina-Pakistan Economic Corridor (CPEC), along with a written guaranteefrom both Pakistan and China that the IMF assistance will not be used torepay loans to China.
