IMF comes to Pak.'s rescue

By B. Muralidhar Reddy

ISLAMABAD, NOV.30. The International Monetary Fund (IMF) has approved a standby loan for Pakistan. Without the much-needed bailout package the military Government could have been in serious trouble as there was every chance of Pakistan defaulting on its debt obligations.

Of $ 596 million approved, $ 192 million would be available immediately.

The new loan is in reality peanuts considering that Pakistan has to shell out an estimated $ 3.5 billion to its creditors. However, the IMF loan for Pakistan opens up possibilities of Islamabhad raising money from rest of the international financial institutions.

In its statement,the IMF has left no one doubt that it is coming to the rescue of Pakistan only because its foreign exchange reserves are precarious and that the loan had been granted after Pakistan has accepted an `economic programme', a euphemism for conditionalities.

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Section  : International
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