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IMF chief says ready to support Pakistan after meeting PM Khan
DUBAI, Feb 11, 2019 (BSS/AFP) – International Monetary Fund chief
Christine Lagarde on Sunday met Pakistani Prime Minister Imran Khan and
assured him that IMF stands ready to support his country.
The meeting took place on the sidelines of the World Government Summit in
Dubai, hosted by the United Arab Emirates, both IMF and prime minister Imran
Khan’s office said.
“I reiterated that the IMF stands ready to support Pakistan,” Lagarde said
in a statement following meeting Khan.
A team from the International Monetary Fund visited Pakistan in November
to discuss a possible bailout with officials, though the talks ended without
agreement, but since then the government official said talks were still
ongoing on a possible bailout.
Pakistan — which has gone to the IMF repeatedly since the late 1980s —
is facing a balance of payments crisis.
“I also highlighted that decisive policies and a strong package of
economic reforms would enable Pakistan to restore the resilience of its
economy and lay the foundations for stronger and more inclusive growth,” said
Lagarde, calling the meeting “good and constructive”.
Pakistan — a regular borrower from the IMF since the 1980s — last
received an IMF bailout in 2013 to the tune of $6.6 billion.
Forecasts by the IMF and World Bank suggest the Pakistani economy is
likely to grow between 4.0 and 4.5 percent for the fiscal year ending June
2019, compared to 5.8 percent growth in the last fiscal year.
Addressing the World Government Summit, prime minister Khan said his
government has started a reform programme and was trying to improve its
economic policies.
“Reforms are painful but it is essential if we have to get out of our
current problems,” Khan told the summit and said his government was making
efforts to cut down the fiscal and current account deficit.
Khan hoped that the time has come that “Pakistan will take off”.
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Khan has launched a highly publicised austerity drive since being sworn
in, including auctioning off government-owned luxury vehicles and buffaloes,
in addition to seeking loans from “friendly countries” and making overtures
to the IMF.
The United Arab Emirates, Pakistan’s largest trading partner in the Middle
East and a major investment sources, recently offered $3 billion to support
Pakistan’s battered economy.
Islamabad also secured $6 billion in funding from Saudi Arabia and struck
a 12-month deal for a cash lifeline during Khan’s visit to the kingdom in
October.
It has also received billions of dollars in Chinese loans to finance
ambitious infrastructure projects.
Despite the pledges, the ministry of finance said Pakistan would still
seek broader IMF support for the government’s long-term economic planning.
In January, Pakistan launched a new investment certificate for overseas
citizens, aimed at easing the country’s balance of payments crisis.
BSS/AFP/HR/1010