Islamabad - Pakistan is to ask the International Monetary
Fund (IMF) to raise its approved loan of 7.6 billion dollars to 12.1
billion dollars during talks with the organization opening in Dubai
on Saturday, a Pakistani official said on Friday.
'Keeping in view our good performance where we have achieved all
targets set by the IMF, Pakistan deserves an increase,' the prime
minister's finance advisor Shaukat Tarin told reporters in Islamabad.
'But it's up to the IMF whether they accept our request or not.'
Pakistani officials and the IMF authorities will review financial
targets set for the country to qualify for the second tranche of 775
million dollars of the 7.6-billon-dollar programme that was approved
in November 2008 to save the country from a default on external
payments.
The 23-month standby loan gave Islamabad 3.1 billion dollars
immediately, with the rest to be phased in over the course of the
period if Islamabad manages to fulfill the IMF's envisioned targets
of reducing the deficit and State Bank of Pakistan's financing of the
government, among other tight fiscal and monetary measures.
Tarin said that the fiscal deficit was curtailed at 1.9 per cent
of the gross domestic product (GDP) against the set target of two per
cent for the first half (July-December) period of the fiscal year
2008-09.
The current account deficit, which stands at 2 billion dollars per
month, is now reduced to 500 million dollars as a result of various
measures.
The borrowing from the central bank, has been reduced from 258
billion rupees (3.26 billion dollars) to 204 billion rupees (2.59
billion dollars) until the end of December 2008.
'The stabilization of the economy has slowed down the economic
activities and turnaround cannot be achieved overnight. But were
doing well and that is why we expect an increase from IMF,' Tarin
said.
Pakistan, a key ally of the West in the war against terrorism, is
witnessing deteriorated law and order with growing militancy in its
volatile tribal areas, affecting foreign investment.
The country approached the IMF last year for a rescue package as
it grappled with a 30-year high inflation rate and fast-depleting
reserves that held barely enough to cover nine weeks of import bills.
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