Pakistan

Islamabad seeks billions from IMF, new terror strategy sought

Article published on the 2008-10-23 Latest update 2008-10-23 14:26 TU

Top dollar - a currency dealer in Karachi
(Photo: Reuters)

Pakistan needs between 2.75 billion and 3.5 billion euros in foreign exchange over the next 30 days, according to government financial advisor Shaukat Tarin. He says that no deal has yet been struck with the International Monetary Fund (IMF) whose help has been sought for the country's desperate financial crisis. MPs on Wednesday ended a debate on security with a condemnation of US air strikes on their country's soil.

Tarin, who is financial advisor to Prime Minister Yousuf Raza Gilani, says that no formal request has been made to the IMF for help in a crisis could see the country going bankrupt.  

Foreign currency reserves have gone from 11 billion to 3.6 billion euros in four months, the rupee has lost 25 per cent of its value and the stock market has dropped 35 per cent.

The central bank governor and top Finance Ministry officials are meeting IMF officials in Dubai but Tarin insisted that, "We have not formally requested the board of IMF for a facility as of now. We will do that when our discussions are complete and once we believe that there is no other option."

Past IMF packages have come accompanied with austerity packages in a country with millions of poor.

Meanwhile, MPs finished a 25-day closed-doors debate on security by passing a resolution condemning US attacks on the country's soil and calling political rather than military action to fight the Pakistani Taliban.

The motion called for "an urgent review of our national security strategy" and called for "consensus and dialogue" to combat the "challenge of militancy and extremism".

"Dialogue must now be the highest priority, as a principal instrument of conflict management and resolution," it declared, advocating more political initiatives in areas where armed Islamic groups are strong.

As Washington presses Islamabad to step up military action against insurgents, the Parliament also condemned unauthorised foreign military activity in the country, a reference to numerous US strikes, mainly in the semi-autonomous tribal areas.

Security officials say that 11 people were killed Thursday when a madrassa, or religious school, in North Waziristan was hit by what they believe was US spy drone.

The air strike was apparently targeting veteran militant Jalaluddin Haqqani, who set up the school during the US-backed fight against Soviet occupation of Afghanistan in the 1980s.