IMF, Pakistan To Meet In Indonesia As Islamabad Seeks Bailout

Govt decides to ‘immediately’ approach IMF

Govt decides to ‘immediately’ approach IMF

"We're seeing more and more countries, China included, let their currencies fluctuate", Lagarde said.

Last month, the Swiss government, raised its GDP forecast for 2018 to 2.9% from 2.4% and, earlier this year, it was announced that Swiss exports had matched and surpassed their recent growth.

Prime Minister Imran Khan made the decision on Monday after meeting with top economic advisers, Umar said in the interview.

Pakistan's stock market index, sliding since October 1, shot up almost 3 percent on news Islamabad plans to seek its 13th International Monetary Fund bailout since 1988.

Pakistan's economic downturn has also coincided with a fissure in relations with the United States, which has cautioned that it did not want International Monetary Fund bailout money be used to pay off Chinese loans, which Washington calls debt trap diplomacy.

"Up from India's growth rate of 6.7 per cent in 2016, the growth projections for this year and the next reflect "a rebound from transitory shocks" of demonetisation and the implementation of the national Goods and Services Tax" and "strengthening investment and robust private consumption", WEO said. On Monday, the currency was trading at 128 per USA dollar on the open market and 124.20 in the official interbank rate.

In August, for example, regulators told trust companies that they will be allowed to conduct some kinds of channeling business if it served the real economy, easing a crackdown on an opaque activity that makes it hard for regulators to monitor who is actually borrowing money, and enables banks to hide the additional risks they're exposed to.

Analysts say the rupee depreciation would fuel inflation and would increase the public debt of the country.

"It's tempting to be a bit depressed about this perspective but I'm actually hopeful because there is a clear appetite to improve and expand trade", she said.

UBG chairman and FPCCI former president Iftikhar Malik said the IMF programme will come with specific external, fiscal and monetary measures, which will likely result in slowdown in GDP growth to around 4 percent compared to GDP growth of 5.8 percent in FY18, besides further hike in interest rates.

He said: "It is good for development to be able to participate in worldwide capital markets to fund things like infrastructure projects and to sustain investment in countries".

"We know that risky behaviour and unsustainable debt is a recipe for financial crises".

"The government has chose to do both", he said while addressing a ceremony to launch Naya Pakistan Housing Programme, a flagship project of his government to build 5 million houses in five years for low income people.

This comes after the Government also revived upwards growth projection for this year, saying the economy is showing signs of recovery despite a number of challenges and risks.

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