International Monetary Fund has offered $6bn dollar package to Pakistan. Pakistan needs $5bn this year to avert a balance of payment crisis. It has to make a payment of $3bn in the next three months and another $500mn in February towards Euro Bond payment. According to information available from IMF sources Pakistan needs $5bn dollar this year to avoid a default and another $5bn dollar in the next year.
US Assistant Secretary of State, Richard Boucher, visited Pakistan to participate in a meeting of Friends of Pakistan. He said that Pakistan will not be given cash. He said that United States would help Pakistan recover from its present financial but money cannot be thrown on the table.
Pakistan has exhausted all options of support from so called friendly countries. This has brought the fact into sharp focus that in international relations economic realities take prominence. Pakistan had requested Saudi Arabia to provide oil on deferred payment nearly six months ago. I think that Saudis are not ready to accept it. If this facility was extended to Pakistan, it could have eased pressure from its foreign exchange reserves. The reluctance by Saudis to supply oil on deferred payment basis should be an eye opener for Pakistani leadership.
Pakistan had hoped of getting assistance from friendly countries, particular Arab countries in the Gulf, but so far we have not seen any firm commitment from any country. Time is fast running out. If friendly countries do not come forward to rescue Pakistan, from its financial crisis, it will have no option but to seek IMF program.
The IMF program will create more problems in the country. IMF will give money on very strict conditions which will not be acceptable to general public.
International Monetary Fund has offered $6bn dollar package to Pakistan. Pakistan needs $5bn this year to avert a balance of payment crisis. It has to make a payment of $3bn in the next three months and another $500mn in February towards Euro Bond payment. According to information available from IMF sources Pakistan needs $5bn dollar this year to avoid a default and another $5bn dollar in the next year.
US Assistant Secretary of State, Richard Boucher, visited Pakistan to participate in a meeting of Friends of Pakistan. He said that Pakistan will not be given cash. He said that United States would help Pakistan recover from its present financial but money cannot be thrown on the table.
Pakistan has exhausted all options of support from so called friendly countries. This has brought the fact into sharp focus that in international relations economic realities take prominence. Pakistan had requested Saudi Arabia to provide oil on deferred payment nearly six months ago. I think that Saudis are not ready to accept it. If this facility was extended to Pakistan, it could have eased pressure from its foreign exchange reserves. The reluctance by Saudis to supply oil on deferred payment basis should be an eye opener for Pakistani leadership.
Pakistan had hoped of getting assistance from friendly countries, particular Arab countries in the Gulf, but so far we have not seen any firm commitment from any country. Time is fast running out. If friendly countries do not come forward to rescue Pakistan, from its financial crisis, it will have no option but to seek IMF program.
The IMF program will create more problems in the country. IMF will give money on very strict conditions which will not be acceptable to general public.
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