financial assistance

Christine Lagarde—the Managing Director of the International Monetary Fund (IMF) on Thursday said that the IMF has not received any formal request from Pakistan for financial assistance.

Lagarde told a news conference that she would be meeting the Pakistan delegation for discussing the issue later on Thursday.

The IMF’s chief economist on Tuesday said that Pakistan has not yet officially contacted the IMF for requesting financial aid, however, if bailout talks get undergoing this week, the objective would be to assist Pakistan to attain its full potential.

While addressing a news conference at the IMF and World Bank annual meetings in Bali, the IMF’s Maurice Obstfeld warned that raised Chinese involvement in the economy of Pakistan could bring both advantages and disadvantages.

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He further said that Pakistan is having financing gap as it has been struck by a large financial and current account deficit, a low level of reserves and a currency which he referred to as too rigid to be over-valued.

Asad Umar—the Finance Minister of Pakistan on Monday said that the government would look to open talks with the IMF in Bali this week for emergency financial aid.

The new prime minister—Imran Khan had previously looked for alternatives for a second bailout program in the span of five years from the IMF as it imposes severity and confines his vision of an Islamic welfare state.

Obstfeld said that if the International Monetary Fund would not start talks with Pakistan this week on a possible new financing program, the gaols would be reformed that would assist Pakistan to reach its immense potential without giving specific details.

He said that the government has shown its desires to endorse deep structural reforms that might break the cycle of Pakistan requesting financial aid from the fund.

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