As global financial crisis deepens, Pakistan is facing bankruptcy problems. Pakistan’s foreign reserves have decreased to 4.5 billion from $16 billion, foreign investors are leaving the country due to political instability and security problems, value of rupee is diminishing every day, the international credit rating agency downgraded Pakistan position and the government is looking for an amount up to $10 billion to shore up the finances.
Pakistan was hoping for assistance from its long-term friend China, but President Asif Ali Zardari returned from Beijing without any commitments made. Another traditional ally, Saudi Arabia, has refused to provide financial assistance to Pakistan.
In all these circumstances the last option that Pakistan has is a call to IMF for assistance. Such a step will will have devastating effect on the poor and it will make their lives more miserable. Financial advisor Shaukat Tareen told Bloomberg.com that he would write to IMF in three or four weeks if Pakistan is not able to obtain funds from ant ally or agencies. Pakistan has already presented its economic policies to the IMF which includes susidies in price and tighter moneatry policy oi finance the deficit budget.