Struggling economy: IMF says Pakistan did not request aid

Its mission chief says Pakistan should gear up efforts to stabilise economy.

WASHINGTON:

The International Monetary Fund said it had not received any official request for an aid programme from Pakistan’s top financial officials amid “fruitful discussions” during the spring meetings of the IMF and World Bank last week.

“We have not received a formal request for a programme from the authorities,” IMF Pakistan Mission Chief Jeffrey Franks said in a statement. The lender urged Pakistan’s government to put more effort into stabilising the country’s struggling economy, after meetings between officials from both sides in Washington last week.

“Pakistan faces difficult economic challenges and we urge the authorities to begin taking the necessary actions to stabilise the economy and lay the groundwork for future growth.”

Pakistan, heading for a general election on May 11, has seen its foreign exchange reserves dwindle and currency slide and has been expected to seek a fresh bailout package from the IMF.

The IMF set an 11.3 billion dollar loan programme for the country in November 2008, to stave off a balance of payments crisis. But Pakistan abandoned the deal in 2011, refusing to carry out the strict financial reforms required by the IMF.

Published in The Express Tribune, April 26^th, 2013.