Amid rising inflation, the Pakistan government on Wednesday hiked petrol prices by another Rs 24 per litre.

Petrol will now cost Rs 233.89 per litre and diesel is set to cost Rs 263.31 after it was raised by Rs16.31.

Finance Minister Miftah Ismail said the rise in fuel prices was due to high international prices while blaming the previous Imran Khan government for the crisis.

<a href="https://www.wionews.com/south-asia/pak-hikes-prices-of-petroleum-products-power-massively-as-chinese-banks-agree-to-refinance-with-23-bn-484583">Also Read:&nbsp;Pak hikes prices of petroleum products, power massively&nbsp;</a>

The Pakistan government has raised the price of fuel for the third time in the last 20 days amid worsening economic situation in the country.

Kerosene oil and light diesel are also set to cost more as the government battles to control prices. Pakistan has been trying to control its fiscal deficit and attempting&nbsp;to secure bailout money from the International Monetary Fund(IMF).

Watch:&nbsp;Pakistan minister asks people to drink less tea

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/gravitas-pakistan-minister-asks-people-to-drink-less-tea-488573/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The IMF has insisted on ending fuel subsidies. Reports claim the IMF is ready to release funds if the Pakistan government agrees to remove fuel subsidies.

Last month while announcing the fuel price hike, Pakistan's new Prime Minister Shehbaz Sharif had said it was needed to save the country from bankruptcy.

The country had witnessed protests in Lahore, Karachi and Islamabad amid rising inflation and fuel price hike earlier this month.

(With inputs from Agencies)

WATCH WION LIVE HERE

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="350" src="https://www.wionews.com/live-tv/embed?autoplay=1&amp;mute=1" width="100%"></iframe>

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us <a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

Amid rising inflation, the Pakistan government on Wednesday hiked petrol prices by another Rs 24 per litre. Petrol will now cost Rs 233.89 per litre and diesel is set to cost Rs 263.

Amid rising inflation, the Pakistan government on Wednesday hiked petrol prices by another Rs 24 per litre. Petrol will now cost Rs 233.89 per litre and diesel is set to cost Rs 263.31 after it was raised by Rs16.31. Finance Minister Miftah Ismail said the rise in fuel prices was due to high international prices while blaming the previous Imran Khan government for the crisis. Also Read: Pak hikes prices of petroleum products, power massively The Pakistan government has raised the price of fuel for the third time in the last 20 days amid worsening economic situation in the country. Kerosene oil and light diesel are also set to cost more as the government battles to control prices. Pakistan has been trying to control its fiscal deficit and attempting to secure bailout money from the International Monetary Fund(IMF). Watch: Pakistan minister asks people to drink less tea The IMF has insisted on ending fuel subsidies. Reports claim the IMF is ready to release funds if the Pakistan government agrees to remove fuel subsidies. Last month while announcing the fuel price hike, Pakistan's new Prime Minister Shehbaz Sharif had said it was needed to save the country from bankruptcy. The country had witnessed protests in Lahore, Karachi and Islamabad amid rising inflation and fuel price hike earlier this month. (With inputs from Agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Pak government raises fuel prices again; petrol, diesel at new high

Pakistan’s economy has been in the doldrums. With inflation rising and the government deficit reaching record&nbsp;heights, the new coalition government headed by PM Shahbaz Sharif has been taking all the possible steps to wrest the derailment of the country's economy.

In an exclusive conversation with WION correspondent Susan Tehrani, Pakistan Finance Minister Miftah Ismail talked about IMF rolling out another bailout package and the possibility of India-Pakistan trade that had been suspended following tensions over terrorism and&nbsp;the Kashmir issue.

WION: The International Monetary Fund (IMF) has set out five major conditions for the revival of the $6 billion bailout package for Pakistan, including the reversal of fuel subsidies, which you seem to agree with. But if this is enforced, would you be able to provide relief to the people of Pakistan?

Miftah Ismail:&nbsp; I think that it's very important for Pakistan to back the IMF program.

We have spent the last two-and-a-half years on this program, where the IMF was able to disperse $3 billion to us with another $3 billion in offing in the next six months. So, to give up this program just now when it was backdoored will make no sense to us. Also, we have some difficulty in raising funds right now and selling our Eurobonds right now in this very difficult market. So, it's very important that we have our multilateral partners.

In that context, we had a discussion with the IMF, which has agreed to send the mission to Pakistan in the middle of May to revive that 7th review, which would entail a tranche of at least a billion dollars or something like that. So, I look forward to welcoming the IMF mission in Pakistan, and one of the points of discussions with the IMF has been about reversing subsidies that were given by the last government in the last month of this government. These are a very large drain on the Government of Pakistan that we cannot sustain. And the amount of money we have to borrow to pay these subsidies is so large that it just crowds out all private investments and increases the deficit and fuels inflation.

So, in order to actually provide real relief to the people, we will not distort prices and try to pass on, in a gradual manner, the real price of fuel and then try to control inflation by cutting down on government deficits.

&nbsp;

WION: India is a country which has a huge market. Do you think it's time Pakistan got down to business? And do you see this happening given that both the prime ministers have engaged in a messaging of stability for the region?

Miftah Ismail: Well, I'm very happy that Prime Ministers Modi and Sharif exchanged civilized, decent messages. But that's not the first time that this has happened between the two countries' leaders. But I'm afraid that as long as Modi is riding on this wave of right-wing ideology and network, it would be very difficult to achieve a thaw in relations between Pakistan and India and get us to have engaged in more vigorous trade. But nonetheless, I can say this on behalf of the Government of Pakistan, if the Government of India is willing to engage with us then they would not find us unwilling. We will be happy to meet India halfway but, India has to sort out the (long-pending) issues and then focus on building peace in the region.

&nbsp;

WION: With the current account deficit (CAD) touching $20 billion this fiscal year, according to the IMF, PM Sharif is due to visit friendly countries —Saudi Arabia, China, and the UAE—ahead of the new budget. Are you optimistic that you will get some relief from them?

Miftah Ismail: My first task is to try and reduce the CAD as much as I can and hopefully, will end the year with not more than $16/17 billion in the CAD of the $20 billion. That's the first point. Secondly, yes, the prime minister is going to visit friendly countries. We have very deep historic ties with Saudi Arabia and the UAE and China have been an all-weather friend of ours. The visit will not be, per se, to get help with the budget or financial support, but you know if it's forthcoming then yes, I would note that these friends have always stood by Pakistan.

With Saudi Arabia, we talked about building a refinery either near Gwadar or Karachi. Saudi Arabia has done a lot of investments in India and at that time also, they said that they were looking to invest in Pakistan. They were also interested in buying certain power plants in Pakistan as part of our privatisation program —these are the point of discussion. Saudi Arabia and UAE are big suppliers of energy to us and so is Qatar. There are multiple issues that we need to talk to these countries.

&nbsp;

WION: On your way to Washington, you met former premier Nawaz Sharif. What are his plans?

Miftah Ismail: Yes, I did meet him. I was on an exit control list for the last three years so, I have not been able to see him. It was a pleasure to go and meet him. I really didn't discuss his plans so much, as we were discussing the state of Pakistan's economy. He showed a lot of concern over what was happening to the Pakistan economy.

&nbsp;

WION: Pakistan has this fog of the Financial Action Task Force (FATF) somewhat hovering over its skies. And there's a review pending in June. Are there any plans on taking Pakistan out of the FATF’s grey list?

Miftah Ismail: I have criticized the PTI government and rightly so on almost everything that they've done. But there are some key areas in which they did some good work. And I'm going to build on that work and try and get Pakistan out of the grey list by June this year, and I'm very optimistic. I have spoken to some people in Washington and I'm quite optimistic that Pakistan will be taken out of the list. I've also spoken to our ambassador, who seems quite optimistic.

&nbsp;

WION: And what about the smuggling of the US dollars into Afghanistan. Pakistan needs US dollars to sustain.&nbsp;The previous government alleged that dollars are being smuggled on a daily basis to neighbouring Afghanistan. Any plans to stop that?

Miftah Ismail: So, there are two to three issues that I, as an economist, would like to address. If dollars are being smuggled out of, let’s say, Pakistan territory into Afghanistan but it's paid for with the Afghan currency, then it doesn't affect the exchange rate between the Pakistani rupee and dollars. There's no effect, no bearing on the exchange rate. You know, the transaction could be physically taking place in Islamabad or Dubai, or it could be taking place in London, it doesn't really matter as long as the payment is being made in Afghani rupee/currency. It has no bearing on our current exchange rate.

The other tissue is the cross-border smuggling of currencies. I think the Pakistani government has put serious controls over these exchange companies.

Pakistan’s economy has been in the doldrums. With inflation rising and the government deficit reaching record heights, the new coalition government headed by PM Shahbaz Sharif has been taking all the possible steps to wrest the derailment of the country's economy.

Pakistan’s economy has been in the doldrums. With inflation rising and the government deficit reaching record heights, the new coalition government headed by PM Shahbaz Sharif has been taking all the possible steps to wrest the derailment of the country's economy. In an exclusive conversation with WION correspondent Susan Tehrani, Pakistan Finance Minister Miftah Ismail talked about IMF rolling out another bailout package and the possibility of India-Pakistan trade that had been suspended following tensions over terrorism and the Kashmir issue. WION: The International Monetary Fund (IMF) has set out five major conditions for the revival of the $6 billion bailout package for Pakistan, including the reversal of fuel subsidies, which you seem to agree with. But if this is enforced, would you be able to provide relief to the people of Pakistan? Miftah Ismail: I think that it's very important for Pakistan to back the IMF program. We have spent the last two-and-a-half years on this program, where the IMF was able to disperse $3 billion to us with another $3 billion in offing in the next six months. So, to give up this program just now when it was backdoored will make no sense to us. Also, we have some difficulty in raising funds right now and selling our Eurobonds right now in this very difficult market. So, it's very important that we have our multilateral partners. In that context, we had a discussion with the IMF, which has agreed to send the mission to Pakistan in the middle of May to revive that 7th review, which would entail a tranche of at least a billion dollars or something like that. So, I look forward to welcoming the IMF mission in Pakistan, and one of the points of discussions with the IMF has been about reversing subsidies that were given by the last government in the last month of this government. These are a very large drain on the Government of Pakistan that we cannot sustain. And the amount of money we have to borrow to pay these subsidies is so large that it just crowds out all private investments and increases the deficit and fuels inflation. So, in order to actually provide real relief to the people, we will not distort prices and try to pass on, in a gradual manner, the real price of fuel and then try to control inflation by cutting down on government deficits. WION: India is a country which has a huge market. Do you think it's time Pakistan got down to business? And do you see this happening given that both the prime ministers have engaged in a messaging of stability for the region? Miftah Ismail: Well, I'm very happy that Prime Ministers Modi and Sharif exchanged civilized, decent messages. But that's not the first time that this has happened between the two countries' leaders. But I'm afraid that as long as Modi is riding on this wave of right-wing ideology and network, it would be very difficult to achieve a thaw in relations between Pakistan and India and get us to have engaged in more vigorous trade. But nonetheless, I can say this on behalf of the Government of Pakistan, if the Government of India is willing to engage with us then they would not find us unwilling. We will be happy to meet India halfway but, India has to sort out the (long-pending) issues and then focus on building peace in the region. WION: With the current account deficit (CAD) touching $20 billion this fiscal year, according to the IMF, PM Sharif is due to visit friendly countries —Saudi Arabia, China, and the UAE—ahead of the new budget. Are you optimistic that you will get some relief from them? Miftah Ismail: My first task is to try and reduce the CAD as much as I can and hopefully, will end the year with not more than $16/17 billion in the CAD of the $20 billion. That's the first point. Secondly, yes, the prime minister is going to visit friendly countries. We have very deep historic ties with Saudi Arabia and the UAE and China have been an all-weather friend of ours. The visit will not be, per se, to get help with the budget or financial support, but you know if it's forthcoming then yes, I would note that these friends have always stood by Pakistan. With Saudi Arabia, we talked about building a refinery either near Gwadar or Karachi. Saudi Arabia has done a lot of investments in India and at that time also, they said that they were looking to invest in Pakistan. They were also interested in buying certain power plants in Pakistan as part of our privatisation program —these are the point of discussion. Saudi Arabia and UAE are big suppliers of energy to us and so is Qatar. There are multiple issues that we need to talk to these countries. WION: On your way to Washington, you met former premier Nawaz Sharif. What are his plans? Miftah Ismail: Yes, I did meet him. I was on an exit control list for the last three years so, I have not been able to see him. It was a pleasure to go and meet him. I really didn't discuss his plans so much, as we were discussing the state of Pakistan's economy. He showed a lot of concern over what was happening to the Pakistan economy. WION: Pakistan has this fog of the Financial Action Task Force (FATF) somewhat hovering over its skies. And there's a review pending in June. Are there any plans on taking Pakistan out of the FATF’s grey list? Miftah Ismail: I have criticized the PTI government and rightly so on almost everything that they've done. But there are some key areas in which they did some good work. And I'm going to build on that work and try and get Pakistan out of the grey list by June this year, and I'm very optimistic. I have spoken to some people in Washington and I'm quite optimistic that Pakistan will be taken out of the list. I've also spoken to our ambassador, who seems quite optimistic. WION: And what about the smuggling of the US dollars into Afghanistan. Pakistan needs US dollars to sustain. The previous government alleged that dollars are being smuggled on a daily basis to neighbouring Afghanistan. Any plans to stop that? Miftah Ismail: So, there are two to three issues that I, as an economist, would like to address. If dollars are being smuggled out of, let’s say, Pakistan territory into Afghanistan but it's paid for with the Afghan currency, then it doesn't affect the exchange rate between the Pakistani rupee and dollars. There's no effect, no bearing on the exchange rate. You know, the transaction could be physically taking place in Islamabad or Dubai, or it could be taking place in London, it doesn't really matter as long as the payment is being made in Afghani rupee/currency. It has no bearing on our current exchange rate. The other tissue is the cross-border smuggling of currencies. I think the Pakistani government has put serious controls over these exchange companies.

Happy to meet India halfway, but…: Pak minister Miftah Ismail speaks to WION on trade ties, IMF package

The talks between cash-strapped Pakistan and the <a href="https://www.wionews.com/pakistan/imran-khan-asks-people-of-pakistan-to-bear-with-rising-inflation-217696">IMF</a> will continue over the weekend after the parleys between the two sides reached a deadlock due to <a href="https://www.wionews.com/south-asia/pakistan-growth-to-hit-eight-year-low-as-imf-bailout-looms-217509">Prime Minister Imran Khan</a>'s reservations over heavy taxation the people would have to bear, according to a media report on Saturday.

Head of IMF Mission to Pakistan Ernesto Rigo is currently in Islamabad as the country hopes to strike a deal with the global lender for a three-year bailout package totalling around $6.5 billion.

We have made good progress in our discussions with the visiting IMF Mission. Consultations will continue over the weekend, Khaqan Hasan Najeeb, the spokesman of the Finance Ministry, was quoted as saying by the Express Tribune.

Sources in the ministry of finance said that there were at least three main sticking points that led to inconclusive talks till the last day of the IMF visit. As of Thursday, the top management of the Ministry of Finance was hopeful to conclude the deal and the IMF team had planned to return on May 11, the report said.

But things went off the track after the IMF insisted on the inclusion of some new conditions in the programme, which appeared unreasonable.

Prime Minister Imran Khan also expressed reservations over massive additional taxes burden that the nation will bear from July this year, provided both sides reach an agreement, it said.

Pakistan has accepted the IMF's demands of flexible exchange rate regime, withdrawal of subsidies, containing borrowing from the central bank and reinitiating the privatisation programme.

The talks remained inconclusive despite Pakistan conceded to almost everything that the IMF asked for, the report said.

Pakistan and the IMF are engaged to finalise the bailout package for the past eight months. It was the second visit by the IMF staff level team during the past five months that again could not conclude the deal within the due time.

The sources said the IMF has sent a draft of the proposed agreement to Washington for vetting that includes some new conditions which were not part of negotiations in the first round of talks.&nbsp;

The talks between cash-strapped Pakistan and the IMF will continue over the weekend after the parleys between the two sides reached a deadlock due to Prime Minister Imran Khan's reservations over heavy taxation the people would have to bear, according to a media report on Saturday.

The talks between cash-strapped Pakistan and the IMF will continue over the weekend after the parleys between the two sides reached a deadlock due to Prime Minister Imran Khan's reservations over heavy taxation the people would have to bear, according to a media report on Saturday. Head of IMF Mission to Pakistan Ernesto Rigo is currently in Islamabad as the country hopes to strike a deal with the global lender for a three-year bailout package totalling around $6.5 billion. We have made good progress in our discussions with the visiting IMF Mission. Consultations will continue over the weekend, Khaqan Hasan Najeeb, the spokesman of the Finance Ministry, was quoted as saying by the Express Tribune. Sources in the ministry of finance said that there were at least three main sticking points that led to inconclusive talks till the last day of the IMF visit. As of Thursday, the top management of the Ministry of Finance was hopeful to conclude the deal and the IMF team had planned to return on May 11, the report said. But things went off the track after the IMF insisted on the inclusion of some new conditions in the programme, which appeared unreasonable. Prime Minister Imran Khan also expressed reservations over massive additional taxes burden that the nation will bear from July this year, provided both sides reach an agreement, it said. Pakistan has accepted the IMF's demands of flexible exchange rate regime, withdrawal of subsidies, containing borrowing from the central bank and reinitiating the privatisation programme. The talks remained inconclusive despite Pakistan conceded to almost everything that the IMF asked for, the report said. Pakistan and the IMF are engaged to finalise the bailout package for the past eight months. It was the second visit by the IMF staff level team during the past five months that again could not conclude the deal within the due time. The sources said the IMF has sent a draft of the proposed agreement to Washington for vetting that includes some new conditions which were not part of negotiations in the first round of talks.

Pakistan to continue talks with IMF on bailout over weekend

By Kamal Munir

Reluctantly seeking an IMF bailout for its balance-of-payments crisis, Imran Khan’s nascent government in Pakistan has already devalued its currency, hiked utility rates and imposed new taxes in an effort to be “ready” for IMF reforms. As if these measures were not enough to make the government sufficiently unpopular, it now faces demands to immediately privatise large loss-making state-owned enterprises.

For a few reasons, the government has so far been reluctant to sell these off. Two reasons stand out in particular. First, selling of these state-owned enterprises is likely to generate significant unemployment. Politically speaking, this would be a highly unpopular move, as Khan’s new government promised to create millions of jobs within five years. Second, given the outstanding debts of Pakistan’s state-owned enterprises, there will be few takers unless the government clears up the balance sheets first.

Whichever course the government takes, it would be foolish to ignore the lessons from Pakistan’s troubled history of previous privatisations – three spring to mind.

Telecoms and homegrown talent

First, do not sell a state-owned enterprise because you are getting a good price. The 2005 privatisation of Pakistan Telecommunication (PTCL), the national telecoms operator, is illustrative in this regard.

After painting the highly profitable corporation as an inefficient, incompetent, out-of-date behemoth, the government sold off a 26 per cent stake (along with full management control) to Dubai-based Etisalat for $2.6 billion. Yet at the time of its privatisation, PTCL was technologically one of the strongest telecoms players in South Asia with a number of technology firsts in the region. Financially, the company had just posted annual revenues of $1.4 billion with a net profit of $452m.

Within four years of its privatisation, thanks to the incoming, highly inexperienced management, the company’s market value had declined by 75 per cent – resulting in a loss of around $3 billion for the Pakistan government (the majority shareholder). On top of that, Etisalat today still owes the government more than $800m (from the acquisition price), which would be twice the value now. Ironically, rather than recovering this amount, the government is now asking for loans from the UAE.

PTCL’s privatisation not only destroyed a treasure trove of technological capabilities that the enterprise had nurtured over decades, but it also deprived Pakistan of a chance to turn a national champion into a regional, South Asian one.

Energy sector and competition

The privatisation of Pakistan’s energy sector has single-handedly crippled the entire economy. It illustrates the importance of ensuring the new entity competes fairly to earn a profit.

From 1994 onwards, investors were invited to set up power plants in exchange for a guaranteed US dollar-based internal rate of return of 15–18 per cent. This was further backed by sovereign guarantees from the government of Pakistan (which meant an extremely high return with zero risk and zero competition).

The plants were reimbursed for all the fixed costs of the power plant including debt servicing and handed the highly lucrative equity return on top. These payments were to be made irrespective of whether or not the independent power producer was asked to produce electricity. Plus, the investors were reimbursed for all variable costs of production, regardless of the type of fuel used and its market price.

The privatisation landed Pakistan in a vicious debt cycle. Energy prices have only gone up, which is unsurprising given the independent power producers face no competition. The state has been unable to keep up with the exorbitant bills it is presented with by investors and has had to start borrowing in international and domestic markets to honour the contracts. As well as racking up huge debts, Pakistan has suffered from severe and prolonged power outages.

Banks and profitability

The third lesson comes from the privatisation of Pakistan’s banks. They became more profitable after privatisation in the early 2000s. But a closer look at their performance once privatised shows that much of this profitability came from lending to the government. Lending to the private sector actually declined. This shows the importance of not privatising when a state-owned enterprise can do the same job more cheaply.

There is little point having private banks if all they do is lend to the government, which could easily own those banks and lend to itself without having to factor in an equity return. The allocation of credit to different sectors of the economy did not improve either. Manufacturing, agriculture, and small businesses – the sectors which were supposed to benefit from privatisation – continued to be deprived of credit.

But, consistent with the general history of privatisation in Pakistan, banking privatisation was great for the new owners. Many got bargain basement deals – while doing little for the cause of national economic development.

Above all, the government should realise that in the absence of broader national development policy, privatisations are not going to yield the desired benefits. Before contemplating any sell-off, the government needs to first figure out the roles it needs various institutions to play and devise appropriate regulatory and monitoring frameworks.

Goals such as maximising the value of an enterprise before its sale or enhancing its profitability should be supplanted by aims that are in line with a larger development plan. In order to avoid the mistakes of previous governments, longer-term goals must be prioritised.

(This article was originally published on The Conversation. Read the <a href="https://theconversation.com/pakistans-privatisation-dilemma-as-it-seeks-imf-bailout-109092">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

By Kamal Munir Reluctantly seeking an IMF bailout for its balance-of-payments crisis, Imran Khan’s nascent government in Pakistan has already devalued its currency, hiked utility rates and imposed new taxes in an effort to be “ready” for IMF reforms.

By Kamal Munir Reluctantly seeking an IMF bailout for its balance-of-payments crisis, Imran Khan’s nascent government in Pakistan has already devalued its currency, hiked utility rates and imposed new taxes in an effort to be “ready” for IMF reforms. As if these measures were not enough to make the government sufficiently unpopular, it now faces demands to immediately privatise large loss-making state-owned enterprises. For a few reasons, the government has so far been reluctant to sell these off. Two reasons stand out in particular. First, selling of these state-owned enterprises is likely to generate significant unemployment. Politically speaking, this would be a highly unpopular move, as Khan’s new government promised to create millions of jobs within five years. Second, given the outstanding debts of Pakistan’s state-owned enterprises, there will be few takers unless the government clears up the balance sheets first. Whichever course the government takes, it would be foolish to ignore the lessons from Pakistan’s troubled history of previous privatisations – three spring to mind. Telecoms and homegrown talent First, do not sell a state-owned enterprise because you are getting a good price. The 2005 privatisation of Pakistan Telecommunication (PTCL), the national telecoms operator, is illustrative in this regard. After painting the highly profitable corporation as an inefficient, incompetent, out-of-date behemoth, the government sold off a 26 per cent stake (along with full management control) to Dubai-based Etisalat for $2.6 billion. Yet at the time of its privatisation, PTCL was technologically one of the strongest telecoms players in South Asia with a number of technology firsts in the region. Financially, the company had just posted annual revenues of $1.4 billion with a net profit of $452m. Within four years of its privatisation, thanks to the incoming, highly inexperienced management, the company’s market value had declined by 75 per cent – resulting in a loss of around $3 billion for the Pakistan government (the majority shareholder). On top of that, Etisalat today still owes the government more than $800m (from the acquisition price), which would be twice the value now. Ironically, rather than recovering this amount, the government is now asking for loans from the UAE. PTCL’s privatisation not only destroyed a treasure trove of technological capabilities that the enterprise had nurtured over decades, but it also deprived Pakistan of a chance to turn a national champion into a regional, South Asian one. Energy sector and competition The privatisation of Pakistan’s energy sector has single-handedly crippled the entire economy. It illustrates the importance of ensuring the new entity competes fairly to earn a profit. From 1994 onwards, investors were invited to set up power plants in exchange for a guaranteed US dollar-based internal rate of return of 15–18 per cent. This was further backed by sovereign guarantees from the government of Pakistan (which meant an extremely high return with zero risk and zero competition). The plants were reimbursed for all the fixed costs of the power plant including debt servicing and handed the highly lucrative equity return on top. These payments were to be made irrespective of whether or not the independent power producer was asked to produce electricity. Plus, the investors were reimbursed for all variable costs of production, regardless of the type of fuel used and its market price. The privatisation landed Pakistan in a vicious debt cycle. Energy prices have only gone up, which is unsurprising given the independent power producers face no competition. The state has been unable to keep up with the exorbitant bills it is presented with by investors and has had to start borrowing in international and domestic markets to honour the contracts. As well as racking up huge debts, Pakistan has suffered from severe and prolonged power outages. Banks and profitability The third lesson comes from the privatisation of Pakistan’s banks. They became more profitable after privatisation in the early 2000s. But a closer look at their performance once privatised shows that much of this profitability came from lending to the government. Lending to the private sector actually declined. This shows the importance of not privatising when a state-owned enterprise can do the same job more cheaply. There is little point having private banks if all they do is lend to the government, which could easily own those banks and lend to itself without having to factor in an equity return. The allocation of credit to different sectors of the economy did not improve either. Manufacturing, agriculture, and small businesses – the sectors which were supposed to benefit from privatisation – continued to be deprived of credit. But, consistent with the general history of privatisation in Pakistan, banking privatisation was great for the new owners. Many got bargain basement deals – while doing little for the cause of national economic development. Above all, the government should realise that in the absence of broader national development policy, privatisations are not going to yield the desired benefits. Before contemplating any sell-off, the government needs to first figure out the roles it needs various institutions to play and devise appropriate regulatory and monitoring frameworks. Goals such as maximising the value of an enterprise before its sale or enhancing its profitability should be supplanted by aims that are in line with a larger development plan. In order to avoid the mistakes of previous governments, longer-term goals must be prioritised. (This article was originally published on The Conversation. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Pakistan’s privatisation dilemma as it seeks IMF bailout

Economic growth in the energy-rich<a href="http://www.wionews.com/world/imf-fears-possible-italy-contagion-to-weaker-european-economies-176252"> Gulf will recover in 2018 from a</a> contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday.

The global lender predicted that an overall energy price recovery from 2015-2016 lows would spur the economies of the six-nation Gulf Cooperation Council to grow by 2.4 per cent in 2018 and 3.0 per cent in 2019, after a contraction of 0.4 per cent last year. &nbsp;

Grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, the GCC states together pump over 17 million barrels per day and depend heavily on crude revenues.

But "the growth outlook for oil exporters remains subject to significant uncertainty about the future path of oil prices," the IMF said in its Regional Economic Outlook for the Middle East and North Africa (MENA).

After their earlier extended recovery, oil prices have shed a fifth of their value in just one month, with Brent crude trading near its lowest price since April.

Growth in non-GCC oil exporters in MENA, which includes Iran, Iraq, Algeria and Libya, is projected to slow to 0.3 per cent in 2018, from three per cent the previous year, and pick up modestly to 0.9 per cent in 2019, the IMF said.

"This largely reflects the expected impact of the re-imposition of US sanctions on Iran, which is likely to reduce Iranian oil production and exports significantly over the next two years at least," the IMF said.

It projected Iran's economy to shrink by 1.6 per cent this year and 3.6 per cent in 2019.

For oil-importing countries in MENA, growth is expected to continue at a modest pace of 4.5 per cent in 2018, before dropping back to four per cent next year, the IMF said.&nbsp;

This level of growth is not sufficient to create the required jobs for a region marred by instability and civil strife, it said.

Oil revenues for MENA exporters have increased by about $260 billion&nbsp;over the period 2016 to 2018.

This has mostly been due to a price rise generated by production cuts in nations belonging to the OPEC cartel, as well as non-OPEC producers.&nbsp;

The current account balance will turn from a deficit into a surplus and overall budget shortfalls will decline, the lender said.

The IMF urged GCC states to continue with and expand reforms, welcoming the imposition of value-added tax by Saudi Arabia and the UAE.

It also called on GCC countries to impose corporate and personal income tax in order to diversify their revenue streams.

Economic growth in the energy-rich Gulf will recover in 2018 from a contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday.

Economic growth in the energy-rich Gulf will recover in 2018 from a contraction last year but remains vulnerable to volatility in crude oil prices, the IMF forecast on Tuesday. The global lender predicted that an overall energy price recovery from 2015-2016 lows would spur the economies of the six-nation Gulf Cooperation Council to grow by 2.4 per cent in 2018 and 3.0 per cent in 2019, after a contraction of 0.4 per cent last year. Grouping Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, the GCC states together pump over 17 million barrels per day and depend heavily on crude revenues. But "the growth outlook for oil exporters remains subject to significant uncertainty about the future path of oil prices," the IMF said in its Regional Economic Outlook for the Middle East and North Africa (MENA). After their earlier extended recovery, oil prices have shed a fifth of their value in just one month, with Brent crude trading near its lowest price since April. Growth in non-GCC oil exporters in MENA, which includes Iran, Iraq, Algeria and Libya, is projected to slow to 0.3 per cent in 2018, from three per cent the previous year, and pick up modestly to 0.9 per cent in 2019, the IMF said. "This largely reflects the expected impact of the re-imposition of US sanctions on Iran, which is likely to reduce Iranian oil production and exports significantly over the next two years at least," the IMF said. It projected Iran's economy to shrink by 1.6 per cent this year and 3.6 per cent in 2019. For oil-importing countries in MENA, growth is expected to continue at a modest pace of 4.5 per cent in 2018, before dropping back to four per cent next year, the IMF said. This level of growth is not sufficient to create the required jobs for a region marred by instability and civil strife, it said. Oil revenues for MENA exporters have increased by about $260 billion over the period 2016 to 2018. This has mostly been due to a price rise generated by production cuts in nations belonging to the OPEC cartel, as well as non-OPEC producers. The current account balance will turn from a deficit into a surplus and overall budget shortfalls will decline, the lender said. The IMF urged GCC states to continue with and expand reforms, welcoming the imposition of value-added tax by Saudi Arabia and the UAE. It also called on GCC countries to impose corporate and personal income tax in order to diversify their revenue streams.

Growth prospects in Gulf countries uncertain due to oil prices: IMF

As Imran Khan ends his<a href="http://www.wionews.com/south-asia/imran-khan-arrives-in-china-to-seek-help-for-pakistans-shrinking-economy-174997"> three-day visit</a> to all-weather ally China, the Pakistan Prime Minister's tour did not pan out the way he expected.&nbsp;

After he won a US $6 billion loan from Saudi Arabia, Khan was hoping for a similar response - but that has not happened.&nbsp;

Beijing remained silent about Islamabad's need for immediate financial support. But, talks over issues involving India were thoroughly discussed.&nbsp;

A joint statement, issued hereafter Prime Minister Imran Khan's talks with Chinese President and Premier Li Keqiang, said that China backed Pakistan's efforts to improve ties with India to settle "outstanding disputes", without directly mentioning the Kashmir issue.

"China appreciates Pakistan's quest for peace through dialogue, cooperation and negotiation, on the basis of mutual respect and equality, and supports Pakistan's efforts for improvement of Pakistan-India relations and for settlement of outstanding disputes between the two countries," the joint statement said.

Over Islamabad issue, Khan said that he expected Chinese support to build exchange reserves and avoid a possible bailout from IMF.&nbsp;

Pakistan is drowning under the weight of his debt with foreign exchange reserves down to US $8 billion - barely enough to cover two months of exports.&nbsp;

While a bailout from the international monetary fund seems inevitable, Pakistan is having second thoughts about it.

The IMF bailout will come with tough conditions -- IMF would examine with a forensic microscope Pakistan's various agreements on the China-Pakistan economic corridor or CPEC.

All weather friends, <a href="http://www.wionews.com/south-asia/willing-to-work-with-pm-to-build-new-era-of-china-pakistan-destiny-xi-jinping-to-imran-khan-175091">China and Pakistan</a> also agreed to enhance their defence cooperation. China is the main supplier of defence equipment for Pakistan.

They agreed to further enhance defence cooperation, maintain high-level visits and exchanges at various levels between relevant departments of the two armed forces, the joint statement said.

Both sides have agreed to make full use of the China-Pakistan Defence and Security Consultation mechanism, deepen cooperation in areas such as military exercises, training cooperation, personnel exchanges, and equipment and technology cooperation, it said.

As Imran Khan ends his three-day visit to all-weather ally China, the Pakistan Prime Minister's tour did not pan out the way he expected. After he won a US $6 billion loan from Saudi Arabia, Khan was hoping for a similar response - but that has not happened.

As Imran Khan ends his three-day visit to all-weather ally China, the Pakistan Prime Minister's tour did not pan out the way he expected. After he won a US $6 billion loan from Saudi Arabia, Khan was hoping for a similar response - but that has not happened. Beijing remained silent about Islamabad's need for immediate financial support. But, talks over issues involving India were thoroughly discussed. A joint statement, issued hereafter Prime Minister Imran Khan's talks with Chinese President and Premier Li Keqiang, said that China backed Pakistan's efforts to improve ties with India to settle "outstanding disputes", without directly mentioning the Kashmir issue. "China appreciates Pakistan's quest for peace through dialogue, cooperation and negotiation, on the basis of mutual respect and equality, and supports Pakistan's efforts for improvement of Pakistan-India relations and for settlement of outstanding disputes between the two countries," the joint statement said. Over Islamabad issue, Khan said that he expected Chinese support to build exchange reserves and avoid a possible bailout from IMF. Pakistan is drowning under the weight of his debt with foreign exchange reserves down to US $8 billion - barely enough to cover two months of exports. While a bailout from the international monetary fund seems inevitable, Pakistan is having second thoughts about it. The IMF bailout will come with tough conditions -- IMF would examine with a forensic microscope Pakistan's various agreements on the China-Pakistan economic corridor or CPEC. All weather friends, China and Pakistan also agreed to enhance their defence cooperation. China is the main supplier of defence equipment for Pakistan. They agreed to further enhance defence cooperation, maintain high-level visits and exchanges at various levels between relevant departments of the two armed forces, the joint statement said. Both sides have agreed to make full use of the China-Pakistan Defence and Security Consultation mechanism, deepen cooperation in areas such as military exercises, training cooperation, personnel exchanges, and equipment and technology cooperation, it said.

Pakistan PM Imran Khan does not get bailout from China

The wheels are falling off Pakistan’s economy. Foreign exchange reserves are down to $8 billion, barely enough to cover two months of imports. Prime Minister Imran Khan is beginning to realise that he has been asked to drink from a poisoned chalice prepared by his mentor, the Pakistani military. During his election campaign, Imran had promised large investments in healthcare and infrastructure. The reality is that Pakistan is drowning in debt. While a bailout from the International Monetary Fund (IMF) seems inevitable, Pakistan is having second thoughts.

An IMF bailout comes with tough conditions. Two, in particular, have unnerved Imran Khan. First, the IMF said it would impose strict spending limits on new projects, including Khan’s pre-election pledge to invest heavily in healthcare and infrastructure. Second, the IMF would examine with a forensic microscope Pakistan’s various agreements in the China Pakistan Economic Corridor (CPEC). These have so far been a tightly kept secret.

He initially agreed to disclose CPEC details to the IMF, but later said Pakistan might not approach it for a bailout after all if Saudi Arabia (where Khan is currently attending a controversial investment conference) pitches in. The CPEC agreements, if disclosed, will reveal inflated costs, high-interest debt and kickbacks.

CPEC projects are a honeypot for the Pakistani military, which skims the cream off every business deal. The Chinese are alarmed that corrupt CPEC deals will show them as complicit, an embarrassment for a country where President Xi Jinping has built his leadership around an anti-corruption drive, jailing thousands of officials on charges of graft.

Even as Pakistan stares at an economic black hole, more bad tidings await it. In an article in Dawn, Pakistan’s leading daily, political scientist Moeed Yusuf wrote of a far-reaching change likely to take place in the India-Pakistan dynamic. He said that the growing economic and military differential between the two countries was growing so rapidly that India no longer considered it necessary to “appease” Pakistan by accepting its offer of talks.

Yusuf quoted Pakistani analysts as saying: “There are regular references to the growing economic and military differential between India and Pakistan and to comparisons with Nepal and Bangladesh when Pakistan is referenced. The mindset doesn’t reflect an India that feels a need to compromise with Pakistan anymore.”

The conclusion: Within a decade or less, Pakistan’s window of opportunity to negotiate a settlement on Kashmir will shut. The power differential would by then be unbreachable. Yusuf says Pakistan must, therefore, shift its focus from geo-politics to geo-economics. Translated, this means abandoning the jihadi factories aimed at India and focusing on the economy.

The complication, of course, is the Pakistani military. It has a vested interest in continuing a low-intensity, low-cost, low-casualty conflict with India to justify one of the world’s largest defence budgets measured as a ratio of GDP.

But even the Pakistani army can see the writing on the wall. It lost a gushing pipeline of funds from Saudi Arabia after it declined to send Pakistani troops to fight the Saudi-led war on Yemen. It is now beginning to lose confidence in China’s ability to replace the United States as an all-weather benefactor. China has been reluctant to lend significant funds to debt-laden Pakistan.

Pakistan’s predicament affords India an opportunity to get to grips with a country that has tried to bleed it for 70 years. Proxy terror attacks will not cease till Pakistan’s 10-year window of opportunity of make-believe parity finally shuts in its face. Indeed, as the economic and military power differential shifts inexorably in favour of India, terror attacks will spike in intensity and frequency, driven by the Pakistani military’s realisation that time is running out.

The military-jihad-mullah complex is so entrenched in Pakistan that Imran Khan will be utterly unable to dismantle it — a pre-requisite for transforming Pakistan’s economy. Besides, he can scarcely cut his umbilical cord with the army that delivered him to power.

Imran though has already failed on several fronts. He was forced to evict from his council of advisors a respected Princeton University-based economist Atif Mian because he is an Ahmadi, a sect reviled in Pakistan. Dozens of Ahmadis, regarded as apostates, are killed in Pakistan every year. Imran suffered another setback in last week’s bypolls where several candidates of his party Pakistan Tehreek-e-Insaf (PTI) lost, reducing the coalition government’s majority in the National Assembly and pointing to an early end to Khan’s electoral honeymoon.

India must now be resolute in rejecting a structured dialogue with Pakistan till its proxy terror attacks cease completely. Pakistan’s regional isolation is complete. SAARC has effectively been replaced with BIMSTEC. Afghanistan and Bangladesh have toxic relations with Pakistan. The Maldives is back in India’s camp after the recent elections.

Clashes on the Iran-Pakistan border have roiled relations between Tehran and Islamabad. Tension flared up last week when Iranian security guards were abducted by terrorists in Sistin-Balochistan bordering Pakistan. Iran has long blamed Pakistan-based terrorists for similar abductions in the past.

With China and Saudi Arabia no longer reliable friends, Pakistan’s era of jihadi terrorism will come to a close sooner than its India-obsessed army imagines. Pakistan’s search for false equivalence with India too will then meet a quiet burial.

(This article was originally published on DNA. Read the <a href="https://www.dnaindia.com/analysis/column-imran-khan-s-moment-of-truth-2678450">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The wheels are falling off Pakistan’s economy. Foreign exchange reserves are down to $8 billion, barely enough to cover two months of imports. Prime Minister Imran Khan is beginning to realise that he has been asked to drink from a poisoned chalice prepared by his mentor, the Pakistani military.

The wheels are falling off Pakistan’s economy. Foreign exchange reserves are down to $8 billion, barely enough to cover two months of imports. Prime Minister Imran Khan is beginning to realise that he has been asked to drink from a poisoned chalice prepared by his mentor, the Pakistani military. During his election campaign, Imran had promised large investments in healthcare and infrastructure. The reality is that Pakistan is drowning in debt. While a bailout from the International Monetary Fund (IMF) seems inevitable, Pakistan is having second thoughts. An IMF bailout comes with tough conditions. Two, in particular, have unnerved Imran Khan. First, the IMF said it would impose strict spending limits on new projects, including Khan’s pre-election pledge to invest heavily in healthcare and infrastructure. Second, the IMF would examine with a forensic microscope Pakistan’s various agreements in the China Pakistan Economic Corridor (CPEC). These have so far been a tightly kept secret. He initially agreed to disclose CPEC details to the IMF, but later said Pakistan might not approach it for a bailout after all if Saudi Arabia (where Khan is currently attending a controversial investment conference) pitches in. The CPEC agreements, if disclosed, will reveal inflated costs, high-interest debt and kickbacks. CPEC projects are a honeypot for the Pakistani military, which skims the cream off every business deal. The Chinese are alarmed that corrupt CPEC deals will show them as complicit, an embarrassment for a country where President Xi Jinping has built his leadership around an anti-corruption drive, jailing thousands of officials on charges of graft. Even as Pakistan stares at an economic black hole, more bad tidings await it. In an article in Dawn, Pakistan’s leading daily, political scientist Moeed Yusuf wrote of a far-reaching change likely to take place in the India-Pakistan dynamic. He said that the growing economic and military differential between the two countries was growing so rapidly that India no longer considered it necessary to “appease” Pakistan by accepting its offer of talks. Yusuf quoted Pakistani analysts as saying: “There are regular references to the growing economic and military differential between India and Pakistan and to comparisons with Nepal and Bangladesh when Pakistan is referenced. The mindset doesn’t reflect an India that feels a need to compromise with Pakistan anymore.” The conclusion: Within a decade or less, Pakistan’s window of opportunity to negotiate a settlement on Kashmir will shut. The power differential would by then be unbreachable. Yusuf says Pakistan must, therefore, shift its focus from geo-politics to geo-economics. Translated, this means abandoning the jihadi factories aimed at India and focusing on the economy. The complication, of course, is the Pakistani military. It has a vested interest in continuing a low-intensity, low-cost, low-casualty conflict with India to justify one of the world’s largest defence budgets measured as a ratio of GDP. But even the Pakistani army can see the writing on the wall. It lost a gushing pipeline of funds from Saudi Arabia after it declined to send Pakistani troops to fight the Saudi-led war on Yemen. It is now beginning to lose confidence in China’s ability to replace the United States as an all-weather benefactor. China has been reluctant to lend significant funds to debt-laden Pakistan. Pakistan’s predicament affords India an opportunity to get to grips with a country that has tried to bleed it for 70 years. Proxy terror attacks will not cease till Pakistan’s 10-year window of opportunity of make-believe parity finally shuts in its face. Indeed, as the economic and military power differential shifts inexorably in favour of India, terror attacks will spike in intensity and frequency, driven by the Pakistani military’s realisation that time is running out. The military-jihad-mullah complex is so entrenched in Pakistan that Imran Khan will be utterly unable to dismantle it — a pre-requisite for transforming Pakistan’s economy. Besides, he can scarcely cut his umbilical cord with the army that delivered him to power. Imran though has already failed on several fronts. He was forced to evict from his council of advisors a respected Princeton University-based economist Atif Mian because he is an Ahmadi, a sect reviled in Pakistan. Dozens of Ahmadis, regarded as apostates, are killed in Pakistan every year. Imran suffered another setback in last week’s bypolls where several candidates of his party Pakistan Tehreek-e-Insaf (PTI) lost, reducing the coalition government’s majority in the National Assembly and pointing to an early end to Khan’s electoral honeymoon. India must now be resolute in rejecting a structured dialogue with Pakistan till its proxy terror attacks cease completely. Pakistan’s regional isolation is complete. SAARC has effectively been replaced with BIMSTEC. Afghanistan and Bangladesh have toxic relations with Pakistan. The Maldives is back in India’s camp after the recent elections. Clashes on the Iran-Pakistan border have roiled relations between Tehran and Islamabad. Tension flared up last week when Iranian security guards were abducted by terrorists in Sistin-Balochistan bordering Pakistan. Iran has long blamed Pakistan-based terrorists for similar abductions in the past. With China and Saudi Arabia no longer reliable friends, Pakistan’s era of jihadi terrorism will come to a close sooner than its India-obsessed army imagines. Pakistan’s search for false equivalence with India too will then meet a quiet burial. (This article was originally published on DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Imran Khan’s moment of truth

In first big confirmation on the bailout package to Islamabad, the International Monetary Fund(IMF) has told WION that it "understands" that Pakistan "intends to approach it".

Though Pakistan has not still approached IMF for the bailout package, the Pakistani finance minister Asad Umar has said that the country will be going forward with it.

<a href="http://www.wionews.com/south-asia/pakistani-rupee-dives-8-as-imf-bailout-talks-loom-170378">Also Read:&nbsp;Pakistani rupee dives 8% as IMF bailout talks loom</a>

The IMF spokesperson told WION,"We have not yet received a formal request for a program from Pakistan’s authorities. However, we understand that Pakistan intends to approach the IMF for support."

The IMF also assured that, "once we receive a formal request, the IMF will consider it as it does for other members of the IMF.”

A month ago when WION had asked IMF this question, the multilateral organisation had said "it has not received a request for financial support for Pakistan."

Approaching the IMF is considered as a U-turn by the new Imran Khan government since before the elections, Khan has been saying that he will go with a "begging bowl" to solve the economic issues his country is facing. Pakistan's economy is facing a massive economic crisis especially balance to payment issues.&nbsp;

Pakistan's Finance Minister Asad Umar on Monday had said,"it was decided that we should start talks with the IMF for such a stabilisation, recovery programme on which basis we could overcome this financial crisis".

Many have linked the current debt crisis with China lead infrastructure project - China Pakistan Economic corridor(CPEC) which has caused many debt-linked issues in several countries including in South Asia in Sri Lanka.

The "Debt Trap Diplomacy" by China has been slammed by US. Earlier this year, US secretary of state Mike Pompeo had said that US will be watching what "IMF does" and "there is no rationale for IMF TAX dollars for those to go to bail out Chinese bondholders"

If IMF agrees to the bailout package, it will be second bailout package in 5 years and 13th in last three decades. Reports suggest Pakistan plans to approach for $12 billion&nbsp;bailout package from the IMF.&nbsp;

In first big confirmation on the bailout package to Islamabad, the International Monetary Fund(IMF) has told WION that it "understands" that Pakistan "intends to approach it".

In first big confirmation on the bailout package to Islamabad, the International Monetary Fund(IMF) has told WION that it "understands" that Pakistan "intends to approach it". Though Pakistan has not still approached IMF for the bailout package, the Pakistani finance minister Asad Umar has said that the country will be going forward with it. Also Read: Pakistani rupee dives 8% as IMF bailout talks loom The IMF spokesperson told WION,"We have not yet received a formal request for a program from Pakistan’s authorities. However, we understand that Pakistan intends to approach the IMF for support." The IMF also assured that, "once we receive a formal request, the IMF will consider it as it does for other members of the IMF.” A month ago when WION had asked IMF this question, the multilateral organisation had said "it has not received a request for financial support for Pakistan." Approaching the IMF is considered as a U-turn by the new Imran Khan government since before the elections, Khan has been saying that he will go with a "begging bowl" to solve the economic issues his country is facing. Pakistan's economy is facing a massive economic crisis especially balance to payment issues. Pakistan's Finance Minister Asad Umar on Monday had said,"it was decided that we should start talks with the IMF for such a stabilisation, recovery programme on which basis we could overcome this financial crisis". Many have linked the current debt crisis with China lead infrastructure project - China Pakistan Economic corridor(CPEC) which has caused many debt-linked issues in several countries including in South Asia in Sri Lanka. The "Debt Trap Diplomacy" by China has been slammed by US. Earlier this year, US secretary of state Mike Pompeo had said that US will be watching what "IMF does" and "there is no rationale for IMF TAX dollars for those to go to bail out Chinese bondholders" If IMF agrees to the bailout package, it will be second bailout package in 5 years and 13th in last three decades. Reports suggest Pakistan plans to approach for $12 billion bailout package from the IMF.

Pakistan intends to approach US for bailout, confirms IMF