Pakistan to begin talks with IMF over yet another bailout
By SaadSayeedISLAMABAD, Nov 6 (Reuters) - Pakistan begins nearly twoweeks of talks with the International Monetary Fund on Wednesdayover what would be the South Asian country's 13th IMF bailoutsince the 1980s to help it end a spiralling current accountcrisis.
Finance Minister Asad Umer says $12 billion is requiredimmediately, a large chunk of which is expected to be drawn fromthe IMF.
"The initial three to four days (of the talks) are fortechnical discussions," Finance Ministry spokesman Noor Ahmedtold Reuters. "Thereafter, there will be policy dialogue on thespecific contents of the programme."
Pakistan last month announced a $6 billion assistancepackage from Saudi Arabia, split into $3 billion in foreigncurrency support and a further loan worth $3 billion in deferredpayments for oil.
The announcement followed Prime Minister Imran Khan's visitto Riyadh last month for an investment conference that wasboycotted by several other leaders following the killing of aSaudi journalist at the country's consulate in Istanbul.
Khan had said before the visit that his country was"desperate" to shore up its foreign currency reserves, which areat a four-year low, equivalent to less than two months ofimports and barely enough to make its debt repayments throughthe rest of the year.
"The support we received left and right will have an impactoverall on our microeconomic numbers. The programme that will be designed (with the IMF) will be stability focused ... They willlook at the numbers and make their decision," Ahmed said.
Pakistan's current account deficit widened 43 percent to $18billion in the fiscal year that ended in June, while the fiscaldeficit has ballooned to 6.6 percent of gross domestic product.
Khan was in China last week where he held talks on economichelp, but Beijing said more talks were needed.
China is Pakistan's closest ally, but Khan's newly electedgovernment has sought to re-think the two countries' signatureproject, the $60 billion China-Pakistan Economic Corridor, whichBeijing touts as the flagship infrastructure programme in itsvast Belt and Road Initiative.
Khan appealed to "friendly countries" for assistance in aneffort to avoid going to the IMF, or at least reduce the size ofany bailout package.
Pakistani officials have been wary of the IMF imposing harshconditions compared to the last bailout in 2013 when Islamabadwas given repeated waivers and avoided serious reforms afterreceiving $6.7 billion.
(Reporting by Saad Sayeed; Editing by Nick Macfie)
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