Pakistan is unlikely to enter another lending programme with the International Monetary Fund, but a final decision will be taken towards the end of the year, Finance Minister Shaukat Tarin said on Thursday. Pakistan’s current IMF programme ends in November, its economy is struggling and it is battling Islamist militants in the northwest.”I think we are moving in the right direction,” Tarin told a foreign news agency in an interview in Singapore. “After we are through with the IMF programme, we don’t need another programme.” However, a final decision will be taken closer to the end of the year, he said.
The IMF bailed out Pakistan in November 2008 to avert a balance of payments crisis and in July increased the loan to$11.3 billion from an initial $7.6 billion.
Tarin said Pakistan’s foreign exchange reserves will likely exceed $20 billion by the end of the year. “We probably could be sitting on $20 billion plus of reserves by the end of December.” Tarin, a former Citibank executive, said he expects aid from friendly countries, planned U.S. dollar bond sales and potential inflows from the government’s privatisation programme will help improve the country’s financial health.
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