September 06, 2008	Saturday	Ramazan 05, 1429

NEW YORK, Sept 5: Pakistan’s economy needs a ‘substantial’ injection of external funds if it is to improve the worsening economic situation, an IMF official said on Friday.

The country’s public finances have deteriorated in the past 18 months amid political instability and violence, which culminated in the resignation of former President Pervez Musharraf last month.

Mohsin Khan, the director of the IMF’s Middle East and Central Asia Department was quoted as telling BBC online that Pakistan had not yet requested help from the IMF, which some economists had advocated, to address a growing balance of payment crisis.

A depreciating rupee, soaring inflation and dwindling currency reserves are among Pakis-tan’s mounting economic problems.

Mr Khan said ministers planned to cut borrowing and tap donors for support.

The soaring cost of oil imports has eaten into the country’s reserves while the spiralling rate of inflation, which has risen to 25 per cent, has sparked public anger.

Growth in the economy, which performed strongly in the early years of the Musharraf era, is expected to fall to a six-year low this year.