Balance of payments worsens: Pakistan could knock at IMF’s doors in April

The govt. has reportedly accepted the IMF’s precondition to let the rupee depreciate by over 4% to qualify for any fresh bailout package that is needed to avoid a default-like situation. Notwithstanding Adviser on Finance Miftah Ismail’s statement that the govt. is not seeking any IMF assistance, the Washington-based lender is said to have been obliged to steer through highly difficult FY18 and FY19. The govt. is expected to take up the issue of new IMF financing in Apr’18 during World Bank-IMF spring meetings in Washington. Although Ismail does not see any further downward readjustment of the currency in the near future, those are in the know of things maintain that lobbyists at home and abroad are working to persuade the authorities to go for another depreciation before Jun’18.

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