DATE=1/15/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-244220
TITLE=PAK / I-M-F (L-ONLY)
BYLINE=SCOTT ANGER
DATELINE=ISLAMABAD
CONTENT=
VOICED AT:
INTRO: THE INTERNATIONAL MONETARY FUND SAYS IT IS MOVING
FORWARD WITH A MULTI-MILLION DOLLAR LOAN PACKAGE FOR PAKISTAN.
AS V-O-A'S SCOTT ANGER REPORTS, THE RESUMPTION OF THE LOAN IS
WELCOME NEWS, BUT IT MAY NOT PROVIDE ANY LONG-TERM SOLUTIONS TO
THE COUNTRY'S ECONOMIC CRISIS.
TEXT: AFTER MEETING IN WASHINGTON, THE I-M-F HAS AGREED TO
RESTART A STALLED 1-POINT-5 BILLION DOLLAR LOAN PACKAGE FOR
PAKISTAN. THE MONEY WAS FROZEN LAST MAY AFTER PAKISTAN CONDUCTED
NUCLEAR TESTS IN RESPONSE TO INDIA'S ATOMIC EXPLOSIONS. THE
INTERNATIONAL COMMUNITY IMPOSED ECONOMIC SANCTIONS ON BOTH
COUNTRIES AS A RESULT.
THE ANNOUNCEMENT HAS BEEN WELCOME NEWS IN PAKISTAN. OFFICIALS
SAY THE LOAN WILL END THE FINANCIAL CRUNCH FACING THE GOVERNMENT.
THEY NOW ANTICIPATE OTHER DONORS RELEASING MONEY TO HELP THE
COUNTRY FILL ITS MULTI-BILLION DOLLAR FINANCING GAP.
BUT CRITICS SAY THE PACKAGE WILL NOT PROVIDE A LONG-TERM SOLUTION
FOR A COUNTRY IN NEED OF AN ECONOMIC OVERHAUL. PAKISTAN'S FORMER
AMBASSADOR TO THE UNITED STATES, MALEEHA LODHI, SAYS I-M-F LOAN
PACKAGES ARE NECESSARY, BUT THEY DO NOT SOLVE LINGERING ECONOMIC
PROBLEMS.
///LODHI ACT///
SOMETIMES, GOVERNMENTS HAVE SEEN LOAN PACKAGES AS
SUBSTITUTES FOR REBUILDING CONFIDENCE AND SUBSTITUTES
FOR REFORM. IN WHICH CASE, THE BAILOUTS BECOME PART OF
THE PROBLEM AND NOT PART OF THE SOLUTION.
///END ACT///
PAKISTAN HOPES THE I-M-F AGREEMENT PAVES THE WAY FOR
RESTRUCTURING OF A 32-BILLION DOLLAR FOREIGN DEBT. UNTIL NOW, IT
HAS BEEN USING GRACE PERIODS TO DELAY PAYMENTS.
NEXT WEEK, THE WORLD BANK WILL CONSIDER A 350-MILLION DOLLAR
ADJUSTMENT LOAN FOR PAKISTAN TO USE IN AREAS OF BANKING AND
PUBLIC UTILITIES. THE MONEY WOULD ALSO BE USED TO HELP REFORM
THE GOVERNMENT'S TAX ADMINISTRATION. (SIGNED)
NEB/SA/GE
15-Jan-99 8:29 AM EST (1329 UTC)
NNNN
Source: Voice of America
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