November 10, 2008	Monday	Ziqa'ad 11, 1429

ISLAMABAD, Nov 9: As the countdown begins for Pakistan to formally request the International Monetary Fund for a bailout package of up to $5 billion, Adviser to the Prime Minister on Finance Shaukat Tarin has said the fund’s conditions will not be tough.

“The IMF’s conditions are not hard. All it wants is that

Pakistan should fulfil the promises it makes prior to getting the financial assistance,” he told newsmen in Mardan after visiting the residence of former NWFP governor Fazl-e-Haq to attend the Chehlum of his brother Pir Fazal Hussain.

Mr Tarin said that Pakistan would provide details of all its projects to the IMF board because the government knew better which areas needed funding.

He said the rupee was heading towards stabilisation and it would gain more value in coming days.

About the arrest of the chief of the country’s largest foreign exchange company on charges of illegal transfer of billions of US dollars abroad, Mr Tarin said the government was taking necessary steps to stop the flight of capital and curb money laundering at a time when the country was facing balance of payments problem.

Pakistan’s foreign exchange reserves have fallen from $16.5 billion in October last year to $6.75 billion this month.

Mr Tarin said that prices of various items would decline in the next six months and give a breathing space to the government and people.

Overall, he said, the economy would soon start improving.

He said the government was focussing on agriculture to increase production of major crops, including wheat, which would help improve the condition of farmers.

Answering a question, the adviser said the “Friends of Pakistan”, particularly Saudi Arabia and China, were ready to help Pakistan and provide support in different ways. Saudi Arabia, he said, could help by providing oil on deferred payment.

President Asif Ali Zardari visited China and Saudi Arabia with the hope of getting assistance in cash as well as technical support to avoid IMF’s non-concessional loans.

However, so far China or Saudi Arabia has not come forward with cash on the table. Pakistan can now wait till Nov 15 to avoid the IMF.

Pakistan immediately needs around $5 billion to keep the economy afloat. The loan from the IMF will be under the standby arrangement, carrying higher interest rate than the Poverty Reduction and Growth Facility Programme.