Pakistan seeks cash amid financial crunch

Islamabad: Pakistan's new leaders are scrambling for foreign cash to ward off a possible economic meltdown.

Battered by high inflation and a plunging currency, the country hopes global powers and financial institutions will hand over the dollars it needs.

But the plea for help comes as potential donors in the West are distracted by the global financial crisis and deepening fears of recession in their own economies.

Pakistan requires an immediate commitment of at least $2 billion to restore confidence in the country after an alarming slump in its foreign reserves, economists say.

Up to $8 billion more will be needed to repay sovereign debts due to mature in 2009, they say.

President Asif Ali Zardari visited China last week to get a promise of assistance, while Pakistani finance officials visited Washington and Gulf countries in search of funds.