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Pakistan seeks $9bn IMF bailout to avert crisis
 Pakistan has asked the International Monetary Fund (IMF) for a $9 billion bailout along with help from other lenders to avert a balance of payments crisis, a Finance Ministry official said on Friday.Credit ratings agency Standard & Poor's cited Pakistan's tardiness in securing foreign assistance for a decision on Friday to lower its rating on the nation's sovereign debt deeper into junk bond territory. "We are asking $9 billion from the IMF, they are talking about $7.4 billion. IMF can give us up to $7.6 billion," a Finance Ministry official told Reuters on condition of anonymity. Economic Adviser Shaukat Tareen told Reuters that the government would soon deliver a letter of intent to the IMF, paving the way for the world's lender of last resort to release funds rapidly. The international community is concerned that an economic meltdown in Pakistan could play into the hands of Al Qaeda. Another official said the letter of intent would probably be sent before Monday, when potential donors are due to gather in Abu Dhabi for a Friends of Pakistan conference. The conference is not expected to result in loans being pledged, but it could pave the way for a ministerial meeting later. Tareen told Reuters a loan of $500 million from China could arrive within weeks. A Finance Ministry official said the IMF would like to see Pakistani interest rates above the core inflation rate, currently running at around 18.3 percent. Posted by: Fred 2008-11-15 |
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