PM bemoans IMF’s hard line in hour of crisis

WON’T LET MILITANCY FIGHT FLAG AMID ECONOMIC TROUBLES: SHARIF

PThe central bank reserves at present stand at $3.09 billion, the lowest since 1998 and not enough to cover the cost of three weeks of imports.

rime Minister Shehbaz Sharif said yesterday the International Monetary Fund was giving the country a tough time over unlocking stalled funding from a $6.5 billion bailout, at a time of “unimaginable” economic crisis.

Hours after his remarks, the Pakistani rupee hit a record low against the US dollar, in a steep slide since last week.

Sharif made the comments during a meeting of civil and military leaders that he chaired in the northwestern city of Peshawar to prepare a response to last Monday’s mosque bombing that killed more than 100 people.

“Our economic situation is unimaginable,” the premier said. “As you know, the IMF mission is in Pakistan, and that’s giving us a tough time,” he said.

Resource crunch

“You all know we are running short of resources,” Sharif said, adding Pakistan “at present was facing an economic crisis.”

IMF’s Pakistan representative did not immediately respond to Reuters request for comment.

Sharif made the remarks in the context of funds the country might need for any military or counter-terrorism response to the resurgent Islamist militancy.

The IMF mission is visiting the country to discuss fiscal consolidation measures the institution has demanded of Pakistan to clear a ninth review of its Extended Fund Facility, aimed at helping countries facing balance-of-payments crises.

The central bank reserves at present stand at $3.09 billion, the lowest since 1998 and not enough to cover the cost of three weeks of imports.

The IMF’s demands aimed at controlling the country’s budget deficit have led to Pakistan leaving its currency to marketbased exchange rates and hiking fuel prices.

The Pakistani rupee fell by 1.9 per cent to a record low of 276.58 per dollar in the inter-bank market yesterday, according to the central bank.

The rupee has slid 16.5 per cent since the artificial cap was removed last week.

Still, despite the economic situation, Sharif said Pakistan will do whatever possible to fight militancy.

“We will use all resources in our capacity to fight this menace,” he said.