Pakistan to seek $4.5 billion from IMF

Pakistan to seek $4.5 billion from IMF
AFP
Comment E-mail Print Share
First Published: Tue, Feb 17 2009. 03 45 PM IST
Updated: Tue, Feb 17 2009. 03 45 PM IST
Karachi: Pakistan is to ask for an additional loan of $4.5 billion from the International Monetary Fund to patch up an economy wilting under a widening trade deficit, an official said Tuesday.
The request will be on top of a $7.6 billion advance already agreed with the IMF, and comes as Pakistani officials meet creditors to review how the cash is being spent.
At the talks in Dubai, which are due to last until 26 February, Pakistani and IMF officials will assess financial targets set for the country to qualify for the second installment of the loan, a finance ministry official said.
“During that meeting, Pakistan will ask for an additional loan of $4.5 billion,” the official told AFP on condition of anonymity as he was not authorised by the government to release the information.
It was not immediately clear whether the IMF would grant the request.
Pakistan got $3.1 billion in the first tranche of a 23-month standby IMF loan last November, with subsequent payments dependent on Islamabad’s fulfilling targets set by the international fund.
Among other tight demands, the IMF wants a reduction in Pakistan’s deficit and huge borrowing from the central State Bank.
The country approached the IMF last year for a rescue package as it grappled with a 30-year high inflation rate and fast-depleting reserves that held barely enough to cover nine weeks of import bills.
Comment E-mail Print Share
First Published: Tue, Feb 17 2009. 03 45 PM IST