PAKISTAN: IMF to restart credit in December

29 November 1996

The IMF has said that it expects to restart monetary support to Pakistan in December. The announcement confirms the IMF's approval for government reform, which it had voiced before the ouster of prime minister Benazir Bhutto on 5 November. Follow-up talks on the reform package were delayed by Bhutto's dismissal.

In a statement issued on 14 November, the fund said that it may increase the amount of money available to the government under the current loan agreement. The statement also said that the IMF may consider an additional loan agreement if the government adheres to economic targets.

Foreign currency reserves presently stand at $670 million. President Farooq Leghari said on 18 November that they were expected to reach $1,000 million by the end of December. Bankers, however, have expressed doubts given debt repayments of $500 million due in December and a substantial trade deficit.

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