Friday 31 October 2008

IMF might approve rescue package for Pakistan by Nov 15

The IMF might approve a rescue package for financially crunched Pakistan by November 15, two days before a meeting of the 'Friends of Paki
stan' group to help the country overcome the economic crisis.

International Monetary Fund and Pakistani officials yesterday concluded negotiations in Dubai on a proposed macro-economic stabilisation programme for the country. The talks, which began on October 21, focused on a policy framework for a possible rescue package for Pakistan.

Pakistan will now send a letter of intent and a memorandum of an economic and financial programme technical jargon for a formal request for help to the IMF in a week, the Dawn Newspaper reported.

After the request is received, the IMF will put it before its executive board, which is expected to take another week to reach a decision.

The IMF might approve the rescue package by November 15, two days before the meeting of the Friends of Pakistan forum, the report said.

The Friends of Pakistan, which includes the US, UN, European Union, UAE and China, was formed last month during President Asif Ali Zardari's visit to New York.

Prime Minister Yousuf Raza Gilani, currently in Turkey on an official visit, told reporters that Pakistan is discussing terms and conditions for an IMF package but he was hopeful that the country would not have to turn to the world body if it received aid from the Friends of Pakistan.

With its foreign exchange reserves dwindling rapidly, Pakistan needs to raise billions of dollars to meet foreign debt payments and to pay for imports. Pakistan has been reluctant to go to the IMF but experts now believe the country may have no other option.

Source: EconomicTimes

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