IMF says Pakistan has met initial targets

[LahoreEstate]

WASHINGTON, Jan 29: The International Monetary Fund said on Thursday that data indicated Pakistan had met its end-December targets under its 23-month IMF funding programme, suggesting the government was making some headway in its balance of payments crisis.

“Initial developments under the programme have been positive,” IMF spokesman David Hawley told a regular news briefing.

“The foreign exchange rate has appreciated somewhat and preliminary information suggests that end-December targets for net international reserves and net domestic assets at the State Bank of Pakistan were met,” he added.

Asked if Pakistan’s reserves had increased, Mr Hawley said he did not have reserve figures.

Earlier on Thursday, the State Bank of Pakistan announced that its foreign exchange reserves rose $260 million to $10.21 billion in the week ending Jan 24. This, however, includes $500 million from China to help rebuild reserves, which had declined to dangerously low levels last year.

Responding to another question, the IMF spokesman said no date had yet been fixed for sending an IMF mission to Pakistan for reviewing the programme. “The next assessment will take place in the first programme review which is scheduled to be completed by March,” he added.

Earlier media reports, however, suggested that IMF and Pakistan officials might meet in Dubai between Feb 14 and 24.

Pakistan and the IMF agreed on a $7.6 billion loan deal in November to steady the country’s finances and stave off a balance of payments crisis and possible default on its foreign debt.

At the time, the Pakistani rupee had fallen sharply against the dollar and the country’s stock market dived after foreign investors took flight amid a global credit crisis that had heightened Pakistan’s economic woes.

The next talks with the IMF will focus on the second tranche of $775 million.

http://dawn.com/2009/01/30/top4.htm