DATE=11/25/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-242151
TITLE=PAKISTAN I-M-F (L ONLY)
BYLINE=AYAZ GUL
DATELINE=ISLAMABAD
CONTENT=
VOICED AT: 

INTRO:  PAKISTAN SAYS IT HAS SUCCESSFULLY NEGOTIATED A 5.5 
BILLION DOLLARS ECONOMIC BAILOUT PACKAGE WITH THE INTERNATIONAL 
MONETARY FUND (I-M-F) AND THE WORLD BANK.  BOTH INTERNATIONAL 
FINANCE INSTITUTIONS HAD STOPPED LENDING TO PAKISTAN AFTER 
SANCTIONS WERE IMPOSED ON THE COUNTRY FOR CONDUCTING NUCLEAR 
TESTS IN MAY.   AYAZ GUL HAS DETAILS FROM ISLAMABAD. 

TEXT:  AFTER TWO WEEKS OF INTENSIVE TALKS WITH I-M-F OFFICIALS, 
PAKISTAN'S FINANCE MINISTER -- ISHAQ DAR -- ANNOUNCED THE 
AGREEMENT AT A NEWS CONFERENCE IN ISLAMABAD (WEDNESDAY).

                           //DAR ACT//

         I AM GLAD TO INFORM YOU THAT BY THE GRACE OF ALL MIGHTY 
         ALLAH, WE HAVE CONCLUDED OUR DISCUSSION WITH THE FUND 
         AND THE (WORLD) BANK.  WE HAVE REACHED AN AGREEMENT WITH
         THEM AND IN FACT IN ORDER TO DO THEIR REST OF THE 
         BUSINESS, THEY ARE ALREADY ON PLANE AND GOING TO 
         WASHINGTON. SO THIS IS A GOOD NEWS THAT THE FUND, THE 
         BANK HAD A COMPLETE AGREEMENT. THERE IS NO PENDING ISSUE
         AND EVERYTHING STANDS RESOLVED.      

                          //END ACT// 

THE AGREEMENT IS EXPECTED TO END MONTHS OF ECONOMIC UNCERTAINTY 
IN PAKISTAN WHERE ECONOMIC GROWTH IS AT A VIRTUAL STANDSTILL,  
THE STOCK MARKET HAS PLUNGED TO RECORD LOWS, EXPORTS HAVE 
DECLINED AND FOREIGN INVESTMENT IS DRYING UP.

MR. DAR SAYS THE LOAN PACKAGE WILL INCLUDE 1.33 BILLION DOLLARS 
OF FRESH CASH INFLOWS FROM THE I-M-F, THE WORLD BANK AND THE 
ASIAN DEVELOPMENT BANK.  HE SAYS THE REMAINDER OF THE PACKAGE  
INCLUDES 3.5 BILLION DOLLARS WORTH OF DEBT RESCHEDULING AND 
RESTRUCTURING .

THE BAILOUT PACKAGE FOR PAKISTAN HAS TO BE APPROVED BY THE I-M-F 
EXECUTIVE BOARD WHICH MEETS IN MID-DECEMBER IN WASHINGTON, BUT 
PAKISTANI OFFICIALS DO  NOT  EXPECT ANY PROBLEMS. 

I-M-F OFFICIALS SAY THE PACKAGE WILL ENABLE PAKISTAN TO NORMALIZE
PAYMENTS ON ITS EXTERNAL DEBT OF OVER 32 BILLION DOLLARS.

U-S-LED ECONOMIC SANCTIONS WERE SLAPPED ON PAKISTAN IN MAY AFTER 
IT CARRIED OUT A SERIES OF NUCLEAR TESTS IN RESPONSE TO SIMILAR 
TESTS BY NEIGHBORING INDIA.  SANCTIONS WERE ALSO IMPOSED ON 
INDIA.

PAKISTAN'S ALREADY TROUBLED ECONOMY WAS DEVASTATED BY THE  
SANCTIONS.  IN JUNE, THE GOVERNMENT OFFICIALS SAID THEY MIGHT 
HAVE TO CONSIDER A MORATORIUM ON FOREIGN DEBT SERVICING UNLESS 
INTERNATIONAL LENDING WAS RESUMED AND THE SANCTIONS LIFTED.

EARLIER THIS MONTH, THE UNITED STATES DECIDED TO WAIVE SOME 
SANCTIONS ON BOTH THE COUNTRIES AFTER INDIA AND PAKISTAN 
INDICATED THEY MAY SIGN THE COMPREHENSIVE TEST BAN TREATY BEFORE 
SEPTEMBER 1999.

HOWEVER, PAKISTAN WANTS THAT THE U-S LIFT ALL SANCTIONS AGAINST 
IT, INCLUDING BAN ON MILITARY PURCHASES FROM WASHINGTON. (SIGNED)

NEB/AG/KL

25-Nov-98 2:09 PM EST (1909 UTC)
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Source: Voice of America
.