low graphics version | feedback | help
IMF in crucial talks with Pakistan
Pakistanis are facing a major economic crisis |
A team from the International Monetary Fund has arrived in Pakistan to discuss restarting the payment of loans to help the country's ailing economy.
This is the first time the IMF has visited Pakistan since the military coup in October.
 |
|
They will also be told about economic reforms planned by the country's military ruler, General Pervez Musharraf, who has pledged to crack down on corruption and loan defaulters.
A $280mn tranche of a $1.56bn IMF loan to Pakistan has been stalled because of concerns over the country's poor tax collection and rising debt.
Pakistan is in urgent need of cash |
These included raising taxes and broadening the tax base, as well as increasing domestic fuel prices.
Tough measures
The previous government's attempt to impose a general sales tax was strongly opposed by the powerful trading community.
The government has also had a long-running feud with independent power producers over tariffs. The dispute has led to threats from the IMF and World Bank to stop lending money to Pakistan.
Soon after his military takeover, General Pervez Musharraf said one of his top priorities was to revive Pakistan's economy.
He put in place a team made up of technocrats and civilians. A former New York banker was appointed as finance minister and a World Bank official placed at the head of Pakistan's central bank.
And he set a deadline for defaulters to pay back millions of dollars of unpaid loans, or face arrest.
|
Search BBC News Online |
|
|
 Advanced search options | |
| |
 | |
 | |
| |
 | BBC RADIO NEWS |
| |
| |
 | BBC ONE TV NEWS |
| |
| |
| WORLD NEWS SUMMARY |
| |
| |
| |
| |
 | PROGRAMMES GUIDE |
Country profiles
|
|
See also: |
|
|
|
 |
29 Oct 99 | South Asia |
|
Pakistan's new economic team |
| |
|
|
14 Oct 99 | The Economy |
|
Pakistan's economic nightmare |
| |
|
|
28 Jul 99 | South Asia |
|
Pakistan: Disappointment over IMF talks |
| |
|
|
25 Oct 99 | South Asia |
|
Who is in charge of Pakistan? |
| |
|
|
14 Oct 99 | The Economy |
|
Pakistan stock market tumbles |
| |
|
|
14 Oct 99 | The Economy |
|
Pakistan closes its banks |
| |
|
|
Internet links: |
|
|
|
|
|
International Monetary Fund |
| |
|
|
Government of Pakistan |
| |
The BBC is not responsible for the content of external internet sites |
|
Links to other South Asia stories are at the foot of the page.
E-mail this story to a friend
~RS~a~RS~international~RS~q~RS~~RS~z~RS~41~RS~)