Pakistan seeks largest loan package from IMF: Report

Source: The Hitavada      Date: 12 Oct 2018 08:46:58


 

By Sajjad Hussain,

ISLAMABAD,

PAKISTAN is seeking its largest loan package of up to USD 8 billion from the IMF to bail itself out from a severe balance-of-payments crisis that threatens to cripple the country’s economy, a media report said on Thursday.


The International Monetary Fund could place strict conditionalities, forcing Pakistan to seek additional loans for meeting those restrictions and this could expand the loan facility to USD 12 billion, said the report. Pakistan began exploring the possibility of yet another loan package with IMF while Pakistan Muslim League (Nawaz) PML-N was still in power and the exploratory talks continued under the interim Government as well, it said. The final decision, however, was announced on Monday when Finance Minister Asad Umar confirmed that Government was going to IMF to bail Pakistan out of its foreign currency crisis. The announcement followed highest single-day loss in a decade in stock market, which plunged by over 1,300 points, losing almost Rs 270 billion of capitalisation.