By NNN-PTI,
Islamabad : Cash strapped Pakistan needs USD five billion to avert a balance of payments crisis and only a positive assessment of its economy by the IMF would spur international lenders to release the funds.
The government estimated it would need between USD 3.4 billion and USD 4.5 billion while multilateral lenders had assessed Pakistan would need USD five billion to bridge the gap in the balance of payments, said Shaukat Tareen, Prime Minister’s adviser on finance.
Only a positive assessment of Pakistan’s economy by the IMF would spur international lenders to release funds to enable the country to avoid a debt default, Tareen told the Dawn newspaper on Wednesday.
He said the meeting with IMF officials in Dubai was a normal consultation but it provided an opportunity to Pakistan to get its home-grown economic revival programme approved. He also denied that Pakistan is seeking USD 10 to 15 billion in aid from multilateral lenders, including the IMF.
The IMF meeting in Dubai would review Pakistan’s economic indicators and prepare a report for approval by the organisation’s board.
“If the IMF endorses our home-grown economic strategy and establishes credit lines, Pakistan will go for the IMF programme on its own terms,” Tareen said.
The IMF’s Middle Eastern and Central Asian chief Mohsin Khan has said that the Fund is ready to offer a programme to Pakistan but Islamabad had so far not formally approached it.
Tareen, however, said Pakistan had pinned high hopes on “Plan A a multilateral lenders’ developmental loan” and “Plan B” assistance from the Friends of Pakistan. He said everything would be clear after the Friends of Pakistan meeting scheduled for next month in Abu Dhabi.