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Govt decides to approach IMF for bailout package

Govt decides to approach IMF for bailout package

ISLAMABAD: The government has decided to approach the International Monetary Fund (IMF) for a bailout package aimed at avoiding default on international debt obligations and restoring confidence among the investors.

“After taking into account the current situation and consultation with leading economists, the government has decided to approach the IMF for a bailout programme,” announced Finance Minister Asad Umar through a recorded video message.

The government took the decision after friendly countries did not bail it out despite Prime Minister Imran Khan himself went to Saudi Arabia with a begging bowl.

Adviser to the Prime Minister on Commerce Razak Dawood, who accompanied the prime minister, had described his Saudi Arabia visit as “it was awful to beg from Saudi Arabia”.

The finance minister will hold meetings with the top IMF leadership during the annual meetings of the World Bank-IMF at Bali, Indonesia later this week.

The government took the decision after the prime minister on Monday won endorsements of leading economists for negotiating an IMF bailout package.

But the experts warned the premier that the loan conditions could undermine the PTI’s promise to provide millions of jobs and homes.

The members of the Economic Advisory Council and other leading economists said ‘Ayes’ after the State Bank of Pakistan informed them that the country faced approximately $10 billion financing gap that “cannot be filled without the support of the IMF”, said sources who attended the meeting.