'Government will have to approach IMF to avert default'

President Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Hussain has said that auction of bonds provides temporary relief and the government will have to approach IMF to avert default while the IMF will impose stringent terms as the relations between Pakistan and US become sulky.
The economic difficulties of the government will increase in 2018 while the energy scarcity will be reduced due to enhanced imports of LNG, he said.
The local currency will shed more points which will result in inflation and increased burden of loans, he said, adding that government will be unable to take tough decisions in the election year resulting in increased deficit and reliance on borrowing.
There will be no notable change in exports, remittances and investment while the rupee will remain under pressure due to multiple reasons, he said. The veteran business leader said that the political temperature will rise in the election year resulting in rallies, sit-ins and protests which will cast a negative shadow on the already struggling economy.
He said there will be no improvement in relations with the US, India or Afghanistan while the ties with China and Russia will be improved. He said that agricultural sector is expected to show robust performance during the New Year while the law and order situation will also improve due to the efforts of the Army.