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Imran Khan vows to steady Pakistan as new IMF bailout looms
ISLAMABAD, Oct 11, 2018 (BSS/AFP) – Pakistan Prime Minister Imran Khan on
Wednesday vowed to steer the country out of a looming balance-of-payments
crisis, days after his young government announced it would seek a fresh IMF
bailout deal.
The cricketer-turned-premier said Pakistan needs $10-12 billion, which he
dismissed as “not a major issue” in televised comments.
“We will get out of this. I will take (the country) out of this,” he
added.
“We have two options: one, we can go to friendly countries and ask them to
bridge this gap; and second, that we go to the IMF,” he said, adding that the
government has decided to do “both”.
Khan’s new administration took office in August vowing to weigh up whether
to seek an IMF bailout to stabilise the shaky economy as it sought other
avenues of financing.
He has sought loans from friendly countries, promised to recover funds
stolen by corrupt officials, and embarked on a series of populist austerity
measures such as auctioning buffalo and luxury cars owned by the prime
minister’s house, and crowdfunding to build a dam in the country’s north.
But help has been in short supply and economists’ warnings have grown
increasingly urgent.
Finance minister Asad Umar, who is attending the fund’s annual meeting in
Bali this week, announced late Monday that the government had decided to
begin talks with the IMF for a “stabilisation recovery programme”.
Pakistan has gone to the IMF multiple times since the late 1980s. The last
time was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar
crisis.
Khan, who came to power on an anti-corruption agenda and promises of
building an Islamic welfare state, encouraged citizens not to get frustrated.
“This is a very small period (of crisis). Our country is a rich country,
it is blessed by Allah. This country will come out of crisis,” he said.
Khan also announced that his government will begin a massive low-cost
housing scheme with the aim of building five million homes in five years.
He did not announce a price tag for the scheme, but promised it would
“bring prosperity”.
BSS/AFP/HR/1120