Pakistan Says It Can Afford to Wait for an IMF Bailout
(Bloomberg) -- Pakistan's Finance Minister Asad Umar said the government can afford a two-month delay to stalled bailout negotiations with the International Monetary Fund with talks set to continue on Thursday.
“We aren't in hurry,” Umar told Bloomberg on the sidelines of a conference in Islamabad on Wednesday. “We are covered even if it delays for two months.”
Earlier in November, discussions with the IMF hit an impasse over the fund's proposed changes to Pakistan's currency and tax policy. Umar said Pakistan's request will be taken by the IMF in time for a January meeting of its executive board.
Pakistan is looking to bridge a financial gap of at least $12 billion caused by its latest balance of payments crisis. The nation's foreign exchange reserves have dropped to the lowest in more than four and a half years.
The nation's central bank confirmed last week that it had received $1 billion from a total $3 billion direct support deposit pledged by Saudi Arabia. The package was promised after Prime Minister Imran Khan was one of the few heads of state to attend the Future Investment Initiative in Riyadh after it emerged Jamal Khashoggi, a Saudi critic, was killed inside the kingdom's consulate in Istanbul in October.
Khan has also traveled to China and the United Arab Emirates in an attempt to drum up similar financial assistance from friendly countries. So far his success has been limited.
The former cricket star was initially reluctant to approach the IMF after U.S. Secretary of State Mike Pompeo said in August that he would be watching to see if Pakistan's new government used the fund to pay off billions of dollars in the opaque Chinese loans.
“We still want to have the program,” Umar said. “But we're not in hurry to have it. It'll ease and open up other funding avenues.”
To contact the reporter on this story: Kamran Haider in Islamabad at khaider2@bloomberg.net
To contact the editors responsible for this story: Chris Kay at ckay5@bloomberg.net, Khalid Qayum
©2018 Bloomberg L.P.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
-
'Never Seen This Level Of Negativity': Sandeep Tandon Says The Next Rally May Be Closer Than You Think
Veteran investor Sandeep Tandon says foreign selling is easing, large-caps are due a comeback and mid-caps are crowded, while he turns positive on gold, power and pharma this Diwali.
-
Indians Stay With Family, Not In Hotels | The Reason Why
India still lacks enough clean, reliable and affordable hotels for budget-conscious travellers.
-
The Economic Imperative: Analysing The Material Driving Force Behind India-Canada Strategic Reset
This economic complementarity is further reinforced by deep institutional investment ties and talent mobility, which form the bedrock of the bilateral framework.
