August 21st, 2010  - by Najam

WASHINGTON: The International Monetary Fund has vowed to stand by Pakistan in the face of massive flood-caused economic challenge as it announced discussions in Washington next week with the country’s finance officials on ways to cope with the impact of the unprecedented natural disaster.

“We look forward to meeting with Pakistani government officials in Washington next week to evaluate the macroeconomic impact of the floods, assess the measures they are taking to address this impact, and discuss ways in which the IMF can assist Pakistan at this difficult juncture,” Masood Ahmed, Director of the Middle East and Central Asia Department of the Fund said. Pakistan’s costly fight against terrorism and impact of the regional unrest on its economy made the country enter into an $ 11.3 billion lending program with the Fund about two years ago.
In his statement, Ahmed noted the additional strains the monsoon flooding – which has destroyed huge agrarian lands in upper Khyber Pakhtunkhwa and Punjab provinces and particularly the southern Sindh province – is likely to have on the country’s economy. “The floods which have hit Pakistan in recent weeks and brought suffering to millions of people will also pose a massive economic challenge to the people and government of Pakistan.” “The scale of the tragedy means that the country’s budget and macroeconomic prospects, which are being supported by an IMF financed program, will also need to be reviewed,” the official remarked. He reaffirmed the Fund’s support for Pakistan, saying “as highlighted by IMF Managing Director Dominique Strauss-Kahn in his letter to President Asif Ali Zardari at the outset of this disaster, the IMF stands with Pakistan at this difficult time and will do its part to help the country.”

Source: News Agencies