Pakistan to seek $6 billion in new IMF loan program: Report

Pakistan to seek $6 billion in new IMF loan program: Report

Pakistan plans to seek a new loan of at least $6 billion from the International Monetary Fund (IMF) to help the incoming government repay billions in debt due this year, Bloomberg News reported on Thursday, citing a Pakistani official.

In Short

  • Pakistan plans to seek new loan of at least $6 billion from IMF
  • The new loan is to help incoming government repay billions in debt due this year
  • IMF spokesperson says fund is available, if requested, to support government in addressing ongoing challenges

Pakistan plans to seek a new loan of at least $6 billion from the International Monetary Fund (IMF) to help the incoming government repay billions in debt due this year, Bloomberg News reported on Thursday, citing a Pakistani official.

The country will seek to negotiate an Extended Fund Facility with the IMF, the report said, adding that the talks with the global lender were expected to start in March or April.

Pakistan averted default last summer thanks to a short-term International Monetary Fund bailout, but the programme expires next month and a new government will have to negotiate a long-term arrangement to keep the $350 billion economy stable.

Ahead of the bailout, the South Asian nation had to undertake a slew of measures demanded by the IMF, including revising its budget, a hike in its benchmark interest rate, and increases in electricity and natural gas prices.

The IMF staff continues a dialogue with authorities on needed longer-term reform efforts, a spokesperson for the fund said, adding that the fund is available, if requested, to support the post-election government through a new arrangement to address Pakistan's ongoing challenges.

Pakistan's caretaker finance minister did not immediately respond to a Reuters request for comment on the Bloomberg report.

Pakistan's vulnerable external position means that securing financing from multilateral and bilateral partners will be one of the most urgent issues facing the next government, ratings agency Fitch said on Monday.

"A new deal is key to the country's credit profile, and we assume one will be achieved within a few months, but an extended negotiation or failure to secure it would increase external liquidity stress and raise the probability of default," it said.

News, Global News, Society , Business,

Disclaimer

The Think Europe Services website is owned and operated by Think Europe Services Sp. z. o. o., a private international company operating independently from the Polish government. Please note that the information on this website is not intended as professional or legal advice. We make every effort to maintain the accuracy of the content, but it's important to be aware that certain terms, like immigration eligibility criteria, may be subject to change without prior notification. ..see more

In reference to our Job Search Service, we specialize in Resume Crafting, LinkedIn Enhancement, and Resume Promotion. It's crucial to emphasize that we do not promote job opportunities on behalf of international employers or serve as agents for any foreign companies. Our Registration number is KRS 0001007806, our tax identification number is NIP 9512557041, and all our services are exclusively offered at our Registered Center.

Please bear in mind that the content provided here is meant solely for informational purposes and should not be regarded as legal or tax guidance. It is recommended that you seek advice from your own legal and/or tax consultant(s). We do not offer legal or tax advice, and the information we present is of a general nature, not customized for any particular company or workforce. Moreover, it does not represent how we operate in a specific jurisdiction. We do not assume responsibility for the accuracy or timeliness of this information, and we are not liable for any losses that may occur as a result of using or relying on it.