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Pak govt to IMF by month-end ‘very likely’, says Citi
[DAWN] With projected external financing requirements of $31 billion in FY19, Pakistain is "very likely to seek an International Monetary Fund (IMF) programme", says Johanna Chua, Citigroup’s Head of Emerging Markets Asia Economics & Strategy Bank in a report released on Monday. The report says an approach is likely by end September."The sheer size of Pakistain’s external financing gap and an experienced list of technocrats advising the government on economic issues will likely lead to the same conclusion" she says, going on to warn that "not going to the IMF is a far more economically and politically painful/riskier option than otherwise." The report says the IMF "and other major stakeholders" should be supportive, adding that the Fund appears to be "very ready to engage the government" and that the US "sees a stable Pakistain economy in its best interest geopolitically" while the Chinese and the Saudis "do not want to be the ’lenders of last resort", a reference to speculation that a bilateral bailout might be on the cards.
a poor excuse is better than no excuse at all... this time around, the support may come with strings attached, the report says. Pakistain has already had 21 fund agreements with the IMF; it is likely that the agency would push for a "more effective program than in the past."
Posted by: Fred 2018-09-05 |
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