He said Pakistan was facing enormous economic challenges for various reasons, such as global shocks, shortage of oil and food and inaction on the part of the previous government. ''This ultimately reflected in massive loss of foreign exchange reserves which have declined to less than seven billion dollar from 16.4 billion dollar in October last year,'' the official said. Mr Tarin said that inflation was at 25 per cent, fiscal deficit was rising, currency had depreciated by over 30 per cent and the economic growth rate had come down to less than five per cent. He said the stock market had declined by over 40 per cent from 15,500 points to a little over 9,000 points.
''In this situation, the country not only needs economic revival but also restoration of the confidence of rating agencies and IFIs to ensure inflow of foreign currency to strengthen our reserves. We are also facing the balance of payment crisis.'' ''We will ask our development partners to bridge the balance of payments gap. When we consulted with IFIs and development partners, they sought endorsement by the IMF. We believe if at all we do not go to the IMF for funding, we need its endorsement of our plans,'' he added.