The Intern-ational Monetary Fund (IMF) will conduct a proper debt sustainability analysis of Pakistan before granting it a bailout package, said Gerry Rice, Director, IMF Communications Department.
Addressing a press conference, Rice said: "Clearly debt transparency is essential to conduct proper analysis of the sustainability of a country''s debt. That is what the IMF does when we are going into a program with our member countries. So that will be the case in Pakistan. I don''t have the details of that as the discussions are ongoing. But one of the things that we do in every program is to have a very detailed debt sustainability analysis to ensure that indeed the country''s debt profile is sustainable. So that kind of information and that level of detail will be available at such times as we reach conclusions on the discussions and go forward with the program."
Rice said that debt sustainability in a country''s debt profile is one of the priority issues that the IMF looks at in the context of a program discussion with a member. That definitely will be the case in the case of Pakistan.
When a questioner sought the IMF response to the recent United States statement where it stated that (U.S) is making sure that the IMF - any finance list sends a loan to Pakistan, is not used to repay its debt to China, the IMF official responded that, "Of course, when a program is agreed by staff with the authorities, it goes forward to the board. And the board representing our membership, including the United States, of course, makes the final decision on whether that program should go ahead."
The IMF official further stated that the Fund staff team was in Islamabad until about November 20, following Pakistan''s request for the IMF financial support.
Rice said, "I do not have a great deal of detail on where we are right now, except to say the discussions are active, they continue toward reaching an understanding on the policy priorities and reform to stabilize the economy, lay the foundations for sustainable, inclusive growth. Those discussions continue and we will keep you posted as to when we think they might be able to conclude."
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