ISLAMABAD – PTI leader Asad Umar, the incoming finance minister ofPakistan has said that Pakistan would need $12 billion in loans – at thevery least – just to keep itself afloat.

Umar will have his task cut out.

Inheriting an economy in absolute shambles would be a massive challenge forImran Khan and his cabinet ministers and all eyes would primarily be onwhat Umar does. The former head of Pakistan’s Engro Corporation said arecent interview to Bloomberg that the loan amount urgently needed would bein the range of $10 billion and $12 billion. He went on to say that thecountry would need something extra from thereon to move away from the edge.”The decision needs to be taken in the next six weeks, the further you goforward the more difficult, the more expensive the options become,” he isquoted as saying.

Pakistan’s economy is indeed crumbling.

Rising imports and the volatile oil markets have greatly hurt the country,especially because its exports – mainly textiles – have only seen a trickleof a rise. Relations with the United States are sour and there areaccusations of China following an opaque policy towards OBOR in Pakistan.

It is most likely that once Imran Khan and his ministers take oath onAugust 11, Pakistan would rush to the International Monetary Fund (IMF) fora bailout package that could be to the tune of $12 billion. The last timethe country turned towards IMF was in 2013 when it got a $6.6 billion loanfor a crisis of lesser proportions than the one existing now. This time,the US could act as a roadblock as well, further complicating the matter.

That China and Saudi Arabia could help is being predicted but loans fromeither or both could come with riders. But Umar in his interview negatedany fears when it comes to Beijing, stating that ‘Pakistan has no Chinesedebt problem.’