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2012-06-04 India-Pakistan
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Hafeez hints at going to IMF for bailout package
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[Dawn]  Flagging the twin deficits -- budget deficit at 7.4 per cent and current account deficit at 1.7 per cent of GDP this year -- as top challenges, Finance Minister Abdul Hafeez Sheikh did not rule out on Saturday the possibility of seeking a fresh bailout package from the International Monetary Fund in six months.
Addressing a post-budget briefing, he said "we are constantly in touch with the IMF", adding the purpose of creating the IMF was to help its member countries in difficult balance-of-payments position so that they could stand on their own feet.
Asked if Pakistain was going to seek a fresh IMF programme in six months, Mr Sheikh said his official position required him to speak carefully because his words could be interpreted by different people in different manners.
In his written statement, the minister said that 'containing current account and budget deficits' was on top of the five challenges which in his view confronted Pakistain at present. Others included acceleration of growth and creation of jobs, overcoming energy shortages, increasing investments and reducing public debt.
The statement put the current account deficit for the outgoing fiscal year at $4 billion or 1.7 per cent of GDP and overall fiscal deficit for the current year at about Rs1.5 trillion or 7.4 per cent of GDP, including Rs391 billion for power sector subsidies and debt consolidation and current account deficit.
The current account deficit for the next year has been projected at $4.8 billion or 1.9 per cent of GDP and budget deficit at Rs1.105 trillion or 4.8 per cent of GDP.
Mr Sheikh explained that when the previous IMF programme was acquired in 2008 to support the balance of payments, Pakistain was in the crisis situation, facing current account and fiscal deficits and high international oil prices. The exchange rate had increased from Rs60 to Rs80 and inflation was high. Pakistain, he said, had repaid $1.2 billion to the IMF this year under an agreed schedule.
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Posted by Fred 2012-06-04 00:00||
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File under: Govt of Pakistan
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Posted by Besoeker 2012-06-04 06:52||
2012-06-04 06:52||
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