Pakistan turns to IMF for economic bailout
Islamabad seeks financial help
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Wednesday, 22, Oct 2008 05:26
Pakistani government officials are in preliminary talks with the International Monetary Fund (IMF) as the south Asian country's economy faces collapse.
A statement released today by the IMF's managing director Dominique Strauss-Kahn said negotiations would begin in the next few days in a bid to secure funds needed to maintain Pakistan's struggling economy.
Its balance-of-payments level is reaching crisis levels as trading and budget deficits continue to mount. The problem has been exacerbated by the country's current security crisis, which is putting off foreign investors from working with the country.
Mr Strauss-Kahn said high food and fuel prices, together with the global financial crisis, were causing Pakistan's need for discussions on an "economic programme of financial assistance".
"A fund mission will begin discussions with the authorities in the next few days on a program aimed at strengthening economic stability and enhancing confidence in the financial system," he said.
"The amount of fund financing under a stand-by arrangement has yet to be determined."