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| India-Pakistan |
| Pakistan financial crisis: US may tighten the noose |
| 2008-11-22 |
| Islamabad: As the government is seriously taking up the US strikes' issue, the American administration is likely to use its influence in delaying financial assistance from the Friends of Pakistan and possibly the International Monetary Fund (IMF), official sources suggest. "The government expects the first tranche from the IMF by the end of the current month but if the Pakistan government continued its harsh language against the US, the American government might delay the process", a senior government official, privy to the latest developments, told The Post. "The US government can also influence the Friends of Pakistan to stay away from helping Pakistan unless Islamabad changes its attitude", he added. Pakistan is aiming to somehow accumulate $25 billion from the 'friends', which may be enough to bring the economy back on track for the next 10 years. The IMF recently agreed to pay $7.6 billion to help Pakistan come out of the persistent financial crisis. The government expects the first $3-4 billion tranche of the IMF loan, spread over 23 months, by the end of November, saving it from almost certain default on an international bond maturing in February. But before the first tranche from the IMF could reach Pakistan, the military has started exercising to gun down drones. This is a clear message to the US that drones intruding into Pakistani space would be targeted in future. "Whatever information, we have, the US government is not happy over the retaliatory statements by Pakistan. The (Pakistan) government will have to soften its stance to come out of the fiscal crisis", the official said. US Assistant Secretary of State Richard Boucher said after the recent 'Friends' meeting that the group wanted to help Pakistan but that its "goal was not to throw money on the table, it is to support long-term goals for Pakistan". His remarks appeared to suggest that immediate assistance for Pakistan would likely come from groups like the IMF or the World Bank. The economic crisis comes amid a surge in violence by Taliban militants in Pakistan as well as neighboring Afghanistan. |
| Posted by:tipper |
| #2 We could fix Pakistan for less than it costs to fix GM? I know which I'd rather see fixed. |
| Posted by: Nimble Spemble 2008-11-22 07:32 |
| #1 Pay to play. Or play to pay. you been playin', now you gonna be payin'... |
| Posted by: M. Murcek 2008-11-22 01:40 |