Bali, Oct 10 (IENews) The International Monetary Fund’s (IMF) chief economist Maurice Obstfeld on Wednesday warned Pakistan against increased Chinese involvement in the economy.
Addressing press conference on Wednesday at the IMF and World Bank annual meetings in Bali, Mr Obstfeld said, that the increasing role could bring both benefits and risks.
He stressed that Pakistan was facing financing gaps as it has been hit by a large fiscal and current account deficit, a low level of reserves and a currency he described as “too rigid” and over-valued, The Express Tribune said.
Obstfeld said that if the IMF does enter into talks with Pakistan this week on a possible new financing programme, the goal would be reforms that would help Pakistan reach its “immense potential” without providing specific details.
“The government has expressed its desires to enact deep structural reforms that might break the cycle of Pakistan needing financial support from the Fund,” he said, the paper quoted.
Finance Minister Asad Umar said on Monday the government would seek to open talks with the IMF in Bali this week for emergency financial assistance.
Prime Minister Imran Khan had earlier sought alternatives to a second bailout programme in five years from the IMF as it imposes austerity and limits his vision of an Islamic welfare state.
(Source UNI News)