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Thursday, May 05, 2011
IMF postpones Pakistan visit amid security worriesWASHINGTON: An International Monetary Fund (IMF) mission’s visit to Pakistan next week has been postponed due to security concerns, an IMF spokesman said on Wednesday, delaying agreement that would unleash around $3 billion in funding to the country. “An IMF mission to meet Pakistani authorities in Islamabad has been postponed in light of security developments in Pakistan,” an IMF spokesman told reporters. “No new dates have been set at this stage.” The postponement of talks follow the killing of Osama Bin Laden by US special forces in a Pakistani compound on Sunday and authorities’ calls for vigilance in case of retaliatory attacks. The IMF mission was to discuss budget targets for the fiscal year 2011/12 and review economic and policy developments under Pakistan’s $11 billion IMF loan programme, the spokesman said. Disbursement of two remaining tranches of about $3 billion under the programme is critical for Pakistan, which is facing a financial crunch due to a widening fiscal deficit brought about by widespread and devastating floods last year. Further delays in disbursement of IMF funding comes in the wake of concerns that the United States may cut bilateral aid to Pakistan after Bin Laden was found living in the city of Abbottabad not far from Islamabad. US lawmakers have questioned how it was possible for Bin Laden to live near a military training academy without the knowledge of the Pakistani administration and have called for a review of US aid to Pakistan. The US is the largest IMF member country and has veto power over decisions. reuters
Courtesy www.dailytimes.com.pk