Pakistan holds talks with IMF on bailout

ISLAMABAD: Pakistan will hold talks with the International Monetary Fund (IMF) for a possible bailout package to help the country overcome a deepening economic crisis.

“The IMF team will assess the overall scenario and risks to the economy and how they can be addressed,” Ministry of Finance spokesman Noor Ahmad said.

Ahmad said the government had completed its homework and expects that its partnership with the agency would last for three years.

The talks for the 13th bailout package since the 1980s, which were to begin yesterday, are scheduled to finish on Nov 20.

Hours ahead of the IMF delegation’s arrival, Finance Minister Asad Umar announced that an immediate balance of payment crisis has been averted with the help of China and Saudi Arabia. Pakistan was facing a US$12 billion (RM50 billion) financing gap for the current fiscal year.

Umar told a press conference late Tuesday that Saudi Arabia has already committed US$6 billion and remaining funds would come from China and other sources. Last month, Saudi Arabia announced it would lend US$3 billion to Pakistan’s central bank for a year to help maintain depleting reserves at a safe level and another US$3 billion for supply of oil on deferred payment.

China has pledged to help Pakistan to overcome a looming economic crisis during Prime Minister Imran Khan’s visit last week. Details of the Chinese assistance are yet to be worked out. – dpa