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Pakistan asks the IMF loan of 4 billion dollars

Jun 15th, 2009 | By admin | Category: Main News

Pakistan asked the International Monetary Fund on a loan of 4 billion dollars, reported Bloomberg. These funds intend to use the Pakistani authorities to reduce the budget deficit country, if donor countries do not allocate the necessary funds for this purpose. Participants in an international meeting of donor countries in Tokyo in April 2009 pledged 5 billion dollars to Pakistan to strengthen its financial system, but has not done so.

The economy of Pakistan has been significantly weakened because of the large-scale terrorist operations against the Taliban in the Swat valley in North-Western provinces. The share of the region accounts for 10% of national GDP and 21% of Pakistan's mineral resources. Due to the operations of government troops to 2 million increase in the number of refugees from war zones, which could have disastrous consequences for the Pakistani economy.

Government plans to double the cost of providing relief for people who have become refugees, the restoration of damaged roads, buildings and bridges, which further increase the budget deficit country. Its negative contribution made to the global financial crisis, a significant decrease in exports, as well as a decrease of foreign direct investment (down by 14% - 3.2 billion dollars over the past 10 months). The need to strengthen the fight against terrorism calls for increased funding the Pakistani army. In the 2009-2010 fiscal year to the defense of the country to allocate 343 billion Pakistani rupees (4.2 billion dollars, an increase of 16% over the previous year, which will also increase the budget deficit of Pakistan.


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