ISLAMABAD (November 10 2008): Advisor to Prime Minister on Finance Shaukat Tarin said on Sunday that International Monetary Fund (IMF) was ready to accept Pakistan's "economic rehabilitation programme", but it wanted Islamabad to remain committed to its (Pakistan's) own terms and conditions for successful implementation of the rehabilitation plan.

In an exclusive talk with Business Recorder, he said that IMF was putting no conditions for Pakistan to re-enter its programme. "The Fund wants Pakistan only to remain committed to whatever it itself agrees to," he said.

The 'Friends of Pakistan' (FOP) forum, he said, did not formally ask Pakistan to join the IMF programme. "But, the impression I got from the forum is that IMF programme will be a kind of guarantee for the assistance to come from FOP countries, and even from some other sources," he said.

Citing the case of Hungary, he said that European Union (EU) was not ready to assist that country until it opted the IMF programme. "So, in Pakistan case, the IMF programme will be of great help to us in getting financial assistance from FOP and other sources," he added.

Tarin said that IMF package was being projected mostly in a negative way in the country. "When we finalise the agreement, there will be almost nothing negative. The package will be of great help for the country in more than one way," he claimed.

The Advisor on Finance said that Pakistan has not received any LoI (letter of intent) from the IMF so far. "Our negotiations with the Fund are going on. By the middle of this month, the two sides will complete the negotiation process. After this, Pakistan will sign the LoI," he said.

About his meetings with UAE authorities, he said that negotiations were going in the right direction. "The UAE is ready to help Pakistan. It will take a few weeks' time, and we will see the actual assistance from the friendly countries, and in what shape it is coming," he said.

Meanwhile, sources said that FOP member countries and others could help Pakistan in a big way, but they were waiting for IMF positive response to Islamabad's request. These countries are keen to have a kind of guarantee, and definitely Pakistan would pursue its rehabilitation programme in letter and spirit, if it agreed with IMF.

Opposition circles were critical of Pakistan seeking IMF assistance, but President Asif Ali Zardari is believed to have taken PML (N) chief Nawaz Sharif in confidence over the IMF package, which is a 'must' for Pakistan to avoid a default. Pakistan is seeking assistance of $9 billion from IMF. This amount would largely be utilised for debt repayment. There are certain reports suggesting that IMF assistance would not be more than $7 billion. But, official circles believe that Pakistan may get more than $3 billion from other sources, after Pakistan entered into IMF bailout package.

Copyright Business Recorder, 2008