Pakistan dealing with “exceptionally high” financial dangers, exterior debt to mount: IMF

By India Today World Desk: An evaluation from the International Monetary Fund (IMF) has mentioned that Pakistan’s financial challenges have been advanced and multifaceted and dangers have been exceptionally excessive, The Dawn reported. Pakistan’s economic system is anticipated to be in flux for the following two to a few years no less than and faces important dangers, it mentioned.

The IMF has projected a rise in Pakistan’s exterior debt to succeed in $130.850 billion in 2023-24 up from $123.574 billion in 2022-23. Pakistan’s Finance Minister Ishaq Dar has mentioned that it’s crucial for Pakistan to keep up a good financial coverage fee.

Pakistan wants one other IMF program and help from different multilateral lenders, the lender said in a report launched on Tuesday, in keeping with Dawn.

“Resolving Pakistan’s structural challenges, including long-term BOP [balance of payments] pressures, will require continued adjustment and creditor support beyond the current programme period,” the Fund mentioned in a report. The report relies on the Memorandum of Economic and Fiscal Policies (MEFP) signed by Ishaq Dar and State Bank Governor Jameel Ahmed, Dawn reported.

“A possible successor arrangement could help anchor the policy adjustment needed to restore Pakistan’s medium-term viability and capacity to repay,” the report mentioned.

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“Addressing them requires steadfast implementation of agreed policies, as well as continued financial support from external partners. Consistent and decisive implementation of programme agreements will be essential to reduce risks and maintain macroeconomic stability,” it mentioned.

Meanwhile, cash-strapped Pakistan has acquired a rollover of a further USD 600 million mortgage from its all-weather ally China to assist shore up the nation’s international trade reserves on the again of an IMF deal, Prime Minister Shehbaz Sharif mentioned on Tuesday.

It is along with the over USD 5 billion in loans that Beijing has rolled over for Pakistan within the final three months, serving to the debt-ridden nation avert a default as negotiations to safe the IMF bailout dragged on, the Dawn newspaper reported.

Recently, the IMF accredited a much-awaited $3 billion bailout for Pakistan, the worldwide lender mentioned, a transfer that’s prone to save the impoverished Islamic nation from defaulting on its debt repayments. It additionally acquired $2bn in monetary assist from Saudi Arabia.

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