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Looking for alternative option, not IMF for $8 bn bailout package: Pak FM

Cash-strapped Pakistan is negotiating a $ 8 billion bailout package from the IMF to overcome a severe balance-of-payments crisis that threatens to cripple the country's economy

Press Trust of India  |  Karachi 

Photo: Reuters
Photo: Reuters

will not approach the for a new package and is considering alternative options to tide over its economic crisis, said Saturday.

Umar made the remarks during a meeting with at the Chamber of Commence and Industry (KCCI).

Umar told the participants that the Imran led government had decided against entering into any new programme with the Monetary Fund (IMF) for now and was exploring other possible avenues to help Pakistan's struggling get back on track.

Cash-strapped is negotiating a $ 8 billion package from the to overcome a severe balance-of-payments crisis that threatens to cripple the country's

The government reached out to some "friendly countries" for economic assistance including Saudi Arabia, and the UAE since assumed office in August.

Umar said different alternative options were being explored instead of rushing into a new programme which would bring more stringent economic conditions for

He told the that the government would be announcing a mini-budget on January 23.

The minister said he was meeting with in and to discuss the amended bill, which he said will facilitate businessmen.

Umar indicated that the amended bill will also carry "some good news" for the (PSX).

He also made it clear that the government had signed several agreements to bring investment to the country instead of just borrowing from friendly countries.

"The impact of these investment agreements will become known from next week," he said.

Pakistan and the UAE finalised the terms and conditions of a $ 6.2 billion support package for this month.

Last month, the UAE said it will soon give $ 3 billion to

In October, agreed to provide Pakistan $ 3 billion in foreign currency support for a year to address its balance-of-payments crisis.

During Khan's visit to on October 23, it was announced that the will provide a $ 6 billion package to Pakistan to support its ailing

The package included $ 3 billion balance of payments support and $ 3 billion in deferred payments on

Pakistan's all weather ally has also pledged to provide a generous aid to to overcome its financial woes. has not yet revealed the quantum of its financial support.

Pakistan apprehends the IMF will come with stringent conditions of austerity besides scrutiny of $ 60 billion China-Pakistan Economic Corridor projects whose terms till now remained confidential.

The is making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt.

First Published: Sat, January 12 2019. 16:20 IST