'Pakistan needs $3-4 bln to stabilise economy'

According to a bank economist, Pakistan needs a capital infusion of $3 bn to $4 bn "up front" to stabilise its economy and bolster rapidly dwindling foreign currency reserves.

Pakistan needs a capital infusion of $3 billion to $4 billion "up front" to stabilise its economy and bolster rapidly dwindling foreign currency reserves, according to Sakib Sherani, a bank economist who is serving on the prime minister's economic advisory council.

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He said Pakistan faces a total financing gap of $7 billion to cover a projected current account deficit of $14 billion for the fiscal year ending June 20, 2009, but not all the funds were needed immediately.

"Upfront we need at least 3 to 4 billion dollars to stablise the economy," Sherani said.