Pakistan: Now or Never?
Perspectives on Pakistan
Pakistan will begin talks with the International Monetary Fund over the next few days to secure funding to avert a balance of payments crisis, the IMF said in a statement from Washington.
The statement came after days of speculation that seemed to have gathered pace after President Asif Ali Zardari’s trip to China where according to these media reports he failed to win a commitment for cash to shore up the country’s reserves, barely enough to cover six weeks of imports.
“The amount of Fund financing under a stand-by arrangement has yet to be determined. Financing could be made within the framework of the Fund’s Emergency Financing Mechanism,” IMF Managing Director Dominique Strauss-Kahn said.
Pakistan needs $10 to $15 billion of support from foreign lenders, according to Shaukat Tarin, adviser to the prime minister on economic affairs.