Pakistan is ready to share details of the debt related to the China-Pakistan Economic Corridor (CPEC) with the IMF, Finance Minister Asad Umar has said while rejecting the US' view that China-funded projects were to blame for the cash-strapped country's current economic woes.

Speaking to the media here on his return from Indonesia where he requested International Monetary Fund's Managing Director Christine Lagarde for a bailout package for Pakistan, Umar said the decision to approach the global lender was taken after consultations with friendly countries.

The IMF team, Umar said, was scheduled to arrive in Pakistan on November 7 to negotiate the programme, likely to span over a three-year period. He said Pakistan's current year debt repayments were about $ 9 billion but obviously it would not entirely be available from the IMF.

Lagarde has made it clear that the IMF would require absolute transparency on Pakistan's debts, including those owned by China under the $ 50 billion CPEC.

Umar, however, rejected the US State Department's statement, suggesting that the debt accrued on the CPEC projects was to blame for Pakistan's current economic crisis.

The US Friday said that the huge Chinese debt was responsible for the economic challenges in Pakistan, adding that it will review Islamabad's bailout plea to the IMF from all angles, including the country's debt position.

"We understand that Pakistan has formally requested assistance from the IMF. In all cases, we examine that closely from all angles of it, including Pakistan's debt position, in evaluating any type of loan programme," State Department spokesperson Heather Nauert had said, adding this is something the US has been tracking fairly closely.

Responding to a question, Nauert said; "The secretary (of state Mike Pompeo) had spoken about this a few months back, I know, in some interviews not that long ago. I think part of the reason that Pakistan found itself in this situation is Chinese debt, and the fact that there is debt that governments have incurred that they maybe thought wouldn't be so tough to bail themselves out of, but has become increasingly tough."

Umar said the US was a key stakeholder in the IMF with about 16.5 per cent votes but enjoyed no veto power in its decision making that required majority 51 per cent votes.

He said no government in Pakistan irrespective of any political background could compromise on national security and the Pakistan Tehreek-e-Insaf government, too, would not opt for an IMF programme if conditionalities are of that nature.

But Umar Saturday said the government will have to take difficult decisions that would be painful for people but necessary under international commitments to get out of the current severe economic situation.

The IMF, Umar said, had asked for details of loans, including ones secured in relation to the CPEC projects, for analysing the debt sustainability.

Pakistan would share "normal debt-related information about CPEC with the IMF", the Express Tribune Sunday quoted the finance minister as saying.

Reiterating that the government had decided to approach the Fund in consultation with friendly countries, he said that talks with these countries were still under way. He did not identify these countries but Islamabad was in contact with China and Saudi Arabia in recent weeks.

Unlike 2013, said the minister, the global environment was not favourable to Pakistan that was why the government thoroughly deliberated upon this matter before approaching the IMF.

He said that Pakistan was facing a financing gap of $ 12 billion this year, adding that this gap would not be bridged by IMF alone.

"We will turn to friendly countries again if the IMF terms are unacceptable to Pakistan during talks on the programme," he asserted.

The minister said that he had been contending for quite some time that economic conditions could lead to national security issues and the government would not compromise on matters of national security.

He also said that Saudi Arabia, China and the United Arab Emirates had not placed tough conditions for bailing Pakistan out.

But he declined to cite specific reasons why these countries had not provided any financial assistance to Pakistan, the report said.

Categorically rejecting the US assertion that the country was in an economic mess because of the CPEC-related debt repayments, Umar said that over the next three

years, such repayments amounted to just $ 300 million a year, which "is very nominal against $ 9 billion of total debt repayments payable during this fiscal year alone".

The "statement of state department spokesperson is 100 per cent wrong", the minister said explaining that Pakistan's financing gap for the current year was about $ 12 billion and total repayments to China averaged $ 300 million over the next three years.

"We totally disagree with that statement,"&nbsp;Umar said, adding that he had already explained this to the US representatives and also to the IMF chief.

"The American narrative is totally wrong narrative,"&nbsp;Umar was quoted as saying by the Dawn.

Without disclosing exact numbers, Umar said Pakistan's net foreign currency reserves were far below than the current gross level of $ 8.3 billion.

The minister said that one of the reasons for widening current account deficit was increase in crude oil prices.

He acknowledged that the IMF programme would impact the lower and middle-income groups in Pakistan.

"We can perhaps live without the IMF but this could be more painful," Umar added.&nbsp;

Pakistan is ready to share details of the debt related to the China-Pakistan Economic Corridor (CPEC) with the IMF, Finance Minister Asad Umar has said while rejecting the US' view that China-funded projects were to blame for the cash-strapped country's current economic woes.

Pakistan is ready to share details of the debt related to the China-Pakistan Economic Corridor (CPEC) with the IMF, Finance Minister Asad Umar has said while rejecting the US' view that China-funded projects were to blame for the cash-strapped country's current economic woes. Speaking to the media here on his return from Indonesia where he requested International Monetary Fund's Managing Director Christine Lagarde for a bailout package for Pakistan, Umar said the decision to approach the global lender was taken after consultations with friendly countries. The IMF team, Umar said, was scheduled to arrive in Pakistan on November 7 to negotiate the programme, likely to span over a three-year period. He said Pakistan's current year debt repayments were about $ 9 billion but obviously it would not entirely be available from the IMF. Lagarde has made it clear that the IMF would require absolute transparency on Pakistan's debts, including those owned by China under the $ 50 billion CPEC. Umar, however, rejected the US State Department's statement, suggesting that the debt accrued on the CPEC projects was to blame for Pakistan's current economic crisis. The US Friday said that the huge Chinese debt was responsible for the economic challenges in Pakistan, adding that it will review Islamabad's bailout plea to the IMF from all angles, including the country's debt position. "We understand that Pakistan has formally requested assistance from the IMF. In all cases, we examine that closely from all angles of it, including Pakistan's debt position, in evaluating any type of loan programme," State Department spokesperson Heather Nauert had said, adding this is something the US has been tracking fairly closely. Responding to a question, Nauert said; "The secretary (of state Mike Pompeo) had spoken about this a few months back, I know, in some interviews not that long ago. I think part of the reason that Pakistan found itself in this situation is Chinese debt, and the fact that there is debt that governments have incurred that they maybe thought wouldn't be so tough to bail themselves out of, but has become increasingly tough." Umar said the US was a key stakeholder in the IMF with about 16.5 per cent votes but enjoyed no veto power in its decision making that required majority 51 per cent votes. He said no government in Pakistan irrespective of any political background could compromise on national security and the Pakistan Tehreek-e-Insaf government, too, would not opt for an IMF programme if conditionalities are of that nature. But Umar Saturday said the government will have to take difficult decisions that would be painful for people but necessary under international commitments to get out of the current severe economic situation. The IMF, Umar said, had asked for details of loans, including ones secured in relation to the CPEC projects, for analysing the debt sustainability. Pakistan would share "normal debt-related information about CPEC with the IMF", the Express Tribune Sunday quoted the finance minister as saying. Reiterating that the government had decided to approach the Fund in consultation with friendly countries, he said that talks with these countries were still under way. He did not identify these countries but Islamabad was in contact with China and Saudi Arabia in recent weeks. Unlike 2013, said the minister, the global environment was not favourable to Pakistan that was why the government thoroughly deliberated upon this matter before approaching the IMF. He said that Pakistan was facing a financing gap of $ 12 billion this year, adding that this gap would not be bridged by IMF alone. "We will turn to friendly countries again if the IMF terms are unacceptable to Pakistan during talks on the programme," he asserted. The minister said that he had been contending for quite some time that economic conditions could lead to national security issues and the government would not compromise on matters of national security. He also said that Saudi Arabia, China and the United Arab Emirates had not placed tough conditions for bailing Pakistan out. But he declined to cite specific reasons why these countries had not provided any financial assistance to Pakistan, the report said. Categorically rejecting the US assertion that the country was in an economic mess because of the CPEC-related debt repayments, Umar said that over the next three years, such repayments amounted to just $ 300 million a year, which "is very nominal against $ 9 billion of total debt repayments payable during this fiscal year alone". The "statement of state department spokesperson is 100 per cent wrong", the minister said explaining that Pakistan's financing gap for the current year was about $ 12 billion and total repayments to China averaged $ 300 million over the next three years. "We totally disagree with that statement," Umar said, adding that he had already explained this to the US representatives and also to the IMF chief. "The American narrative is totally wrong narrative," Umar was quoted as saying by the Dawn. Without disclosing exact numbers, Umar said Pakistan's net foreign currency reserves were far below than the current gross level of $ 8.3 billion. The minister said that one of the reasons for widening current account deficit was increase in crude oil prices. He acknowledged that the IMF programme would impact the lower and middle-income groups in Pakistan. "We can perhaps live without the IMF but this could be more painful," Umar added.

Pakistan ready to share details of CPEC debts with IMF for bailout package: Finance minister Umar

Pakistan's new government has decided to open talks on financial assistance with the International Monetary Fund amid a mounting balance of payments crisis, the finance minister told local television on Monday.

"Today, it was decided that we should start talks with IMF” Finance Minister Asad Umar told GEO TV in an interview on Monday night.

He said the talks would be held "so that such a programme, a stabilisation, a recovery programme, on which basis we could overcome this financial crisis".

The country's foreign currency reserves dropped by $627 million in late September to $8.4 billion, barely enough to cover sovereign debt payments due through the end of the year.

Pakistan's new government has decided to open talks on financial assistance with the International Monetary Fund amid a mounting balance of payments crisis, the finance minister told local television on Monday.

Pakistan's new government has decided to open talks on financial assistance with the International Monetary Fund amid a mounting balance of payments crisis, the finance minister told local television on Monday. "Today, it was decided that we should start talks with IMF” Finance Minister Asad Umar told GEO TV in an interview on Monday night. He said the talks would be held "so that such a programme, a stabilisation, a recovery programme, on which basis we could overcome this financial crisis". The country's foreign currency reserves dropped by $627 million in late September to $8.4 billion, barely enough to cover sovereign debt payments due through the end of the year.

Pak's Imran Khan government to hold talks with IMF for financial assistance

The International Monetary Fund (IMF) warned on Friday that Pakistan needs to quickly secure "significant external financing" to stave off a foreign currency crisis, though it did not suggest who could supply the money.&nbsp;

The IMF, also said more action is needed to stabilise the economy while praising steps taken in the past year.

The statements came a day after an IMF team wrapped up an official visit to Pakistan.&nbsp;

The new government of Prime Minister Imran Khan has been reluctant to ask the IMF for a second bailout in five years.

But foreign reserves dropped by $627 million last week to $8.4 billion, barely enough to cover sovereign debt payments due through the end of the year. Last week`s fall was the sharpest in years.

Finance Minister Asad Umar has said foreign reserves need to be boosted by at least $8 billion, but so far none of its allies including China and Saudi Arabia have offered such a large sum despite high-level visits from officials of both.

Friday`s IMF statement on Friday did not use the word "bailout" but made clear Pakistan needs to find some source of outside cash influx soon.

"Decisive policy action and significant external financing will be needed to stabilise the economy," the statement said, quoting delegation leader Harald Finger as saying that both are required "in the near term".

Many economists believe Pakistan eventually will have no choice but to go back to the IMF.&nbsp;

However, as the world`s last-resort lender, the IMF places strict conditions on aid, pushing for cuts in government budget deficits. This would make it difficult for Khan to fulfil his campaign promises for an "Islamic welfare state".

The IMF urged Khan`s government expand reform measures taken in the past year. The past measures include raising interest rates by 275 basis points and have the rupee depreciation by about 20 per cent since December.

The lender said and controls on the rupee devaluation should be loosened and interest rates raised further as well as closing the fiscal deficit.

The lender said there should be "more exchange-rate flexibility" and further increases in interest rates. There is also a need to reduce the fiscal deficit, it said.

"Recent policy measures are steps in the right direction, but not yet sufficient," the IMF statement said.

The International Monetary Fund (IMF) warned on Friday that Pakistan needs to quickly secure "significant external financing" to stave off a foreign currency crisis, though it did not suggest who could supply the money.

The International Monetary Fund (IMF) warned on Friday that Pakistan needs to quickly secure "significant external financing" to stave off a foreign currency crisis, though it did not suggest who could supply the money. The IMF, also said more action is needed to stabilise the economy while praising steps taken in the past year. The statements came a day after an IMF team wrapped up an official visit to Pakistan. The new government of Prime Minister Imran Khan has been reluctant to ask the IMF for a second bailout in five years. But foreign reserves dropped by $627 million last week to $8.4 billion, barely enough to cover sovereign debt payments due through the end of the year. Last week`s fall was the sharpest in years. Finance Minister Asad Umar has said foreign reserves need to be boosted by at least $8 billion, but so far none of its allies including China and Saudi Arabia have offered such a large sum despite high-level visits from officials of both. Friday`s IMF statement on Friday did not use the word "bailout" but made clear Pakistan needs to find some source of outside cash influx soon. "Decisive policy action and significant external financing will be needed to stabilise the economy," the statement said, quoting delegation leader Harald Finger as saying that both are required "in the near term". Many economists believe Pakistan eventually will have no choice but to go back to the IMF. However, as the world`s last-resort lender, the IMF places strict conditions on aid, pushing for cuts in government budget deficits. This would make it difficult for Khan to fulfil his campaign promises for an "Islamic welfare state". The IMF urged Khan`s government expand reform measures taken in the past year. The past measures include raising interest rates by 275 basis points and have the rupee depreciation by about 20 per cent since December. The lender said and controls on the rupee devaluation should be loosened and interest rates raised further as well as closing the fiscal deficit. The lender said there should be "more exchange-rate flexibility" and further increases in interest rates. There is also a need to reduce the fiscal deficit, it said. "Recent policy measures are steps in the right direction, but not yet sufficient," the IMF statement said.

Pakistan needs to secure 'significant external financing': IMF

asad-umar

Asad Umar, News on Asad Umar, stories on Asad Umar, articles on Asad Umar, Asad Umar stories at Wion, Asad Umar news, Asad Umar latest news

asad umar

Pakistan ready to share details of CPEC debts with IMF for bailout package: Finance minister Umar

Pak's Imran Khan government to hold talks with IMF for financial assistance

Pakistan needs to secure 'significant external financing': IMF