Pakistan to approach IMF for bailout package

Pakistan has said to be approaching International Monetary Fund (IMF) for a bailout package even though its new prime minister Imran Khan had earlier opposed such measures.

The package is being requested to address mounting balance of payments crisis and according to the country’s Finance Minister Asad Umar the PM will soon initiate talks with the IMF.

Umar added the package is required for a stabilization and recovery program, and this will help to bring current difficult economic situation of the cash-strapped country under control.

Finance ministry sources said the decision has been taken after exploring all other options like seeking from overseas Pakistanis and support from friendly countries.

The annual meeting of IMF is scheduled to be held between October 12 and 14 in Bali, Indonesia and the initial talks of bailout package could start then.

Things will not move fast as reaching an agreement would take couple of months and thereafter the money will start pouring.

However, it is not yet known how much support Pakistan would request from the IMF. Sources said the government needs more than $9 billion to meet the current deficit.

An assessment from Finance Ministry reveals the country requires $11.7 billion in current fiscal year to meet the deficit.

Since the 1980s Pakistan has taken twelve such IMF bailouts and the latest was in September 2013 with approval of $6.6 billion.