DUBAI – IMF’s chief economist has revealed that Pakistan has not approachedthe international lending agency for a bailout yet. However, in casePakistan approaches, the firm will take all steps to ensure that thecountry can reach its full potential.
During the IMF and World Bank meetings being held in Bali, Indonesia,Maurice Obstfeld, IMF Chief Economist, said that increased involvement bythe Chinese may bring both benefits and risks to Pakistan.
The country is facing huge financial gaps due to its large fiscal andcurrent account deficits, he added. This situation has been furtherexacerbated by the incidence of low foreign reserves and an ‘over-valued’currency.
Asad Umar, Pakistan’s finance minister, signaled his intention to talk withIMF in Bali this week and secure emergency financial assistance.
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As per earlier reports, Asad Umar was previously looking at alternativesthat could help Pakistan avoid going to the IMF for the second time in 5years, as part of PM Imran’s vision to make the country a Islamic welfarestate.
