Pakistan demanded financial help from International Monetary Fund (IMF) on Wednesday. The amount is intended to use for repayments of loans and to deal with financial crisis. The country witnessed decline in foreign investment due to internal commotions and militant activities.

A Pakistan Government official said the country is using the last option. It would help the country to stabilize its financial system amid global financial crisis. I.M.F. mission is likely to respond to Pakistan in the next few days. Pakistan would determine the amount of aid from IMF after meeting with authorities, but Pakistani economists believe that it needs $5 billion to avoid defaulting on debt.

However, IMF provides funds on the basis of certain conditions. The aid seeking country has to reduce public spending but it would be difficult for Pakistan to fully abide by the conditions under some political compulsions.

Some other countries such as Iceland, Hungary, Serbia and Ukraine also approached IMF for financial aid. The monetary fund was created in 1944. It aided to rebuild the financial system of world after World War II.