International Monetary Fund says not approached by Pakistan for financial assistance

  • International Monetary Fund says not approached by Pakistan for financial assistance

International Monetary Fund says not approached by Pakistan for financial assistance

"The challenge for the current government is to ensure that fundamental economic structural reforms are carried out to ensure that this spiral of being in an International Monetary Fund program every few years is broken once and for all", the Finance Ministry said. The IMF projections don't take into account Trump's threat to expand the tariffs to effectively all of the more than US$500 billion in goods the United States bought from China past year.

"We have to find a way to get out of this hard situation". The 0.2 percentage point downgrade to the 2019 growth forecast is attributable to the negative effect of recent tariff actions, assumed to be partially offset by policy stimulus, it said.

It is expected Pakistan will need a bigger sum this year to avoid a balance of payments crisis and stabilise a wobbly economy hurt by a shortage of dollars plus ballooning current account and fiscal deficits.

In China, growth is projected to moderate from 6.9 per cent in 2017 to 6.6 per cent in 2018 and 6.2 per cent in 2019, reflecting a slowing external demand growth and necessary financial regulatory tightening, the report said. The move is speculated to have been pushed by authorities in response to the IMF's calls for a weaker exchange rate. It estimates global output could fall by more than 0.8 per cent in 2020 and remain 0.4 per cent below its trend line over the long term, in a scenario where Trump follows through on all his threats, including global duties on cars.

The currency's latest drop to between 130 to 136 per dollar, according to the people who asked not to be identified as they aren't authorized to speak publicly, comes after the International Monetary Fund repeatedly stated that the rupee was overvalued.

Several emerging markets had their forecasts cut, including Argentina, Brazil, Iran and Turkey, reflecting factors including tighter credit. "Pakistan may very well find itself seeking another bailout in the next three to four years if it does not do structural reforms". These were reduced by 0.2 and 0.4 percentage points for this year and next, partly as a result of higher interest rates making these nations' debts more costly to service.

The Pakistani government has made a decision to approach the International Monetary Fund (IMF) for a bailout to address the mounting balance of payments crisis faced by the South Asian country, Finance Minister Asad Umar announced on Monday. "Our probability that we would attach to further bad news has gone up", Obstfeld said. The last time was in 2013, when Islamabad got a $6.6 billion loan to tackle a similar crisis.

Islamabad has cut the size of the biggest Chinese "Silk Road" project in Pakistan, a reconstruction of the main rail line between the port city of Karachi and Peshawar in the northwest by $2 billion, citing government concerns about the country's debt levels.

However the U.S., one of the IMF's biggest donors, has raised fears Pakistan could use any bailout money to repay mounting loans from China, sparking criticism from Islamabad. "We have looked at all our options". Only the headline has been changed.