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IMF team in Pak for bailout talks even as Islamabad says fiscal woes 'over'

Pakistan secured $6 billion in funding from Saudi Arabia and struck a 12-month deal for a balance of payments lifeline during Khan's visit in October

AFP | PTI  |  Islamabad 

Imran Khan, PTI, Pakistan election
Pakistan PM Imran Khan (Photo: ANI)

An Monetary Fund team arrived in Wednesday for talks on a possible IMF bailout, even as insisted it had solved its immediate crisis.

Speaking shortly after returned from Beijing, Pakistan's minister said Tuesday that assurances from - combined with a pledge made by last month - meant that Pakistan's immediate fiscal woes were "over".

"We had a gap of $12 billion and in that $12 billion, six billion came from and the rest came from China," Asad Umar told reporters, without specifying the nature of the Chinese assistance.

The secretary and the governor of the will attend a meeting in Beijing on Friday to finalise the terms of the assistance, he added.

secured $6 billion in funding from and struck a 12-month deal for a lifeline during Khan's visit in October.

Despite the pledges, the ministry of said the would still seek broader IMF support for the government's long term economic planning.

Since taking power in August, former Khan has been searching for ways to rally a struggling hit by inflation and shore up the country's dwindling foreign currency reserves.

As well as a highly-publicised austerity drive, including auctioning off government-owned luxury automobiles and buffaloes, the new has also made overtures to the IMF - which has bailed Pakistan out repeatedly since the 1980s.

However, received billions of dollars in Chinese loans to finance ambitious infrastructure projects, and the US - one of the IMF's biggest donors - has raised fears that Pakistan could use any money to repay its debts to Beijing.

- which last received an IMF in 2013 to the tune of $6.6 billion - has refuted these claims.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, November 07 2018. 19:20 IST