ISLAMABAD: According to Bloomberg News on Thursday, which cited a Pakistani official, Pakistan is to apply for a new loan from the International Monetary Fund (IMF) for at least $6 billion in order to assist the incoming government in repaying billions of dollars in debt that is due this year.
According to the report, the nation will try to come to terms on an Extended Fund Facility with the IMF, and it was anticipated that discussions with the international lender would begin in March or April.
A short-term IMF rescue prevented a default last summer, but the program ends in April, and a new administration will need to negotiate a long-term agreement to maintain economic stability.
The IMF forced the nation to implement a number of policies, including changing its budget, raising its benchmark interest rate, as well as raising the cost of natural gas and electricity.
When Reuters asked the IMF and the acting finance minister for comment on the Bloomberg story, they did not answer right away. Securing funding from bilateral and multilateral partners will be among the top priorities for the incoming administration due to the nation’s precarious external position, ratings agency Fitch stated on Monday.
It stated, “A new agreement is essential to the nation’s credit profile, and we anticipate reaching one in the coming months. However, a drawn-out negotiation or its failure to be secured would heighten external liquidity strain and elevate the likelihood of default.”
SOURCE: DAWN NEWS
