Pakistan, IMF start crucial bailout talks IMF delegation arrived in Islamabad.
ISLAMABAD -- A delegation of the International Monetary Fund (IMF) arrived in Islamabad on Wednesday and will stay for two weeks to negotiate the terms of a bailout package that will help the country stabilise its economy. Fixing Pakistan's troubled economy is the biggest challenge facing the new government. This is because the government's expenditures are much higher than its revenue, which leads to a loss of Rs2.2 trillion, leaving it with little money to spend on its citizens. It, therefore, relies on borrowing from banks to meet its expenses. On the international front, the country's monthly imports exceed its exports as for every dollar earned, two leave the country. The country is then left with fewer dollar reserves to pay for essential imports (oil, raw materials, machinery etc) and to repay its foreign loans. At the end of October, Pakistan had only $7.7 billion in its foreign exchange...
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