Pakistan may not approach IMF for bailout package, says Imran Khan
The prime minister said they were in talks with friendly countries for help, but did not name any nation.
Pakistan Prime Minister Imran Khan has said that his country may not have to approach the International Monetary Fund for a bailout package to tide over the economic crisis. “The next two foreign visits are of high importance,” Khan told a delegation of senior editors on Wednesday, according to The Express Tribune. “Our talks with friendly countries are under way. If we had to go to the IMF, we shall resist against hard conditions.”
Although Khan did not name any country, the Pakistani media reported that the government was consulting allies like China and Saudi Arabia for financial help.
Khan said the country’s economy was facing its worst challenge, reported The News. “We have reserves for just two or three months,” he said. “We have to pay 6 billion rupees daily for debt servicing.” He revealed that authorities have found 128 more bank accounts through which billion of rupees were laundered outside the country. “Even enemies do not treat you the way previous governments treated the country,” said Khan.
Last week, Pakistan Finance Minister Asad Umar met IMF Managing Director Christine Lagarde to discuss a bailout package. A team from the global lender is scheduled to arrive in Pakistan on November 7 to discuss the bailout, which likely to be spread over three years.
Umar agreed to share with the IMF the details of Chinese loans procured for projects that are part of the China-Pakistan Economic Corridor. The China-Pakistan Economic Corridor is part of China’s Belt and Road Initiative. India has opposed the project as part of it will pass through the disputed territory in Kashmir.
Earlier this month, Pakistan decided to reduce investment in a railway project by $2 billion (approximately Rs 1,468 crore) after the new government expressed concerns about the national debt. Since Khan took over as the new prime minister, Pakistan has attempted to rethink several such projects.