IMF, Pakistan to meet as Islamabad seeks bailout


"I will take (the country) out of this", he said. "We demanded money as a self-respecting, sovereign state that does not need anyone's help to reaffirm itself as the very best country in the world", Umar said.

The IMF and World Bank meetings, attended by more than 19,000 delegates, showed no sign of disruption from an offshore quake early Thursday morning between Bali and Java island that killed three people.

The U.S. and China have imposed higher tariffs on tens of billions of dollars' worth of products the two countries have exported to each other, with no immediate end in sight to the tit-for-tat dispute.

According to a report in Dawn, the diplomatic sources shared the International Monetary Fund could enforce stringent conditions which would compel Pakistan to seek additional financing for meeting those restrictions and widen the loan facility to $12 billion.

Khan, who took office in July, sought alternatives to what would be the second International Monetary Fund bailout in five years because the International Monetary Fund is expected to impose budgetary restraint, new taxes, and other tough conditions on the government in exchange for any loans.

But the gyrations that rocked Wall Street the day before and Asia and Europe on Thursday, taking the Shanghai Composite index down 5.2 percent and Japan's Nikkei 225 almost 4 percent, do partly reflect rising interest rates in the USA and some other countries and growing uncertainty over trade, she said. "Fix the system. Don't break it".

The rules-making World Trade Organization, based in Geneva, has ways of addressing US complaints that China's policies unfairly extract advanced technologies and put foreign companies at a disadvantage in its push to dominate certain industries, she said.

"My recommendation is very simple: De-escalate, fix the system and don't break it because all countries have had the benefit of that legal framework for many years and it has served the global trade rather well", Ms Lagarde said at press conference during the IMF-World Bank meetings in Bali.

Argentina and Pakistan are among countries grappling with potentially destabilizing financial woes.

The Outlook said the global economy is expected to grow at 3.7 percent this year and next year - down 0.2 percentage points from an earlier forecast, as the trade war started to hit economic activity worldwide.

Pakistan is one of the biggest borrowers in China's global Belt and Road initiative, taking out billions of dollars in loans in recent years for infrastructure projects.

The outflows under its estimated tail-risk scenario are much higher than during the European sovereign debt crisis in the fourth quarter of 2011, for instance, when United States interest rates were low and the dollar was weaker, but risk aversion was high.

"Trade is critical, because that is what has lifted so many people out of extreme poverty", said Kim.

"US growth will decline once parts of its fiscal stimulus go into reverse", Mr Obstfeld said in a statement.