RAWALPINDI: Mr Robert S. McNamara’s talks with President Zulfikar Ali Bhutto and Finance Minister Dr Mubashir Hasan are believed to have been a hard bargaining exercise with the World Bank President seeking the Pakistan Government’s approval to a proposal to allow a team of International Monetary Fund to investigate into Pakistan’s wavering economy. Government sources here were evasive to questions regarding the subjects discussed and the progress made at the talks today [Jan 29]. … World Bank sources, however, indicated that Mr McNamara considered the proposed investigation important before providing the 50 million dollar stand-by credit which the Pakistan Government had earlier asked from the World Bank for the current financial year. The investigation was also considered necessary as a preliminary to the economic assistance for the next financial year through the Aid-to-Pakistan Consortium.

World Bank sources believed that the Pakistan Government was reluctant to accept the proposal for fear that it may lead to increased pressure for the devaluation of the Pakistan rupee. … According to sources close to the World Bank team, the Government of Pakistan’s assessment was that its foreign assistance requirement for the next financial year would be about 350 million dollars.

Published in Dawn, January 30th, 2022