President Camacho
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Pakistan may part ways with IMF
ISLAMABAD: Pakistan is mulling to wean itself from International Monetary Fund (IMF) stand-by loan programme, a step that would deny it a couple of yet to be received tranches worth $3 billion, Geo News reported Thursday.
According to details countrys financial managers are pondering upon the prospects of breaking the debt-shackles, but a final decision will wait till a meeting slated for September 23-25 with the IMF authorities in US.
Sources privy to the matter told Geo News that it is quite probable that Pakistan may neither apply for an extension nor engage in a new loan programme. If it comes to pass then countrys economy will break free form any direct IMF loan agreement by October 1 this year.
Sources in ministry of finance added that Pakistan was to receive two tranches worth $3 billion in the successful culmination of the loan programme it is currently in, which is a far cry in the given circumstances.
Pakistan is also deliberating about a borrowing $5-7 billion from the lender of the last resort to boot.
By going for it government would be able to take economic decision keeping next elections in mind in 2012. Moreover it would not have to bow down to any IMF diktats on subsidies and its borrowing form the banks to check fiscal deficit.
According to sources countrys foreign exchange reserves are enough to foot IMFs repayments due in 2012. In addition to that government is also giving a serious thought to buying oil from Saudi Arabia and Iran on deferred payments.
Pakistan economic team is most likely to leave for USA next week to hold important meeting with International Monetary Fund at the sidelines of a World Bank and IMF annual meeting to be held from September 23-25 in Washington.
Finance Minister Dr Abdul Hafeez Shaikh would lead the Pakistani side in the annual meeting of WB and IMF.
ISLAMABAD: Pakistan is mulling to wean itself from International Monetary Fund (IMF) stand-by loan programme, a step that would deny it a couple of yet to be received tranches worth $3 billion, Geo News reported Thursday.
According to details countrys financial managers are pondering upon the prospects of breaking the debt-shackles, but a final decision will wait till a meeting slated for September 23-25 with the IMF authorities in US.
Sources privy to the matter told Geo News that it is quite probable that Pakistan may neither apply for an extension nor engage in a new loan programme. If it comes to pass then countrys economy will break free form any direct IMF loan agreement by October 1 this year.
Sources in ministry of finance added that Pakistan was to receive two tranches worth $3 billion in the successful culmination of the loan programme it is currently in, which is a far cry in the given circumstances.
Pakistan is also deliberating about a borrowing $5-7 billion from the lender of the last resort to boot.
By going for it government would be able to take economic decision keeping next elections in mind in 2012. Moreover it would not have to bow down to any IMF diktats on subsidies and its borrowing form the banks to check fiscal deficit.
According to sources countrys foreign exchange reserves are enough to foot IMFs repayments due in 2012. In addition to that government is also giving a serious thought to buying oil from Saudi Arabia and Iran on deferred payments.
Pakistan economic team is most likely to leave for USA next week to hold important meeting with International Monetary Fund at the sidelines of a World Bank and IMF annual meeting to be held from September 23-25 in Washington.
Finance Minister Dr Abdul Hafeez Shaikh would lead the Pakistani side in the annual meeting of WB and IMF.
