Islamabad, 14 May 2023, GNP: The International Monetary Fund suggest Pakistan to acquire an additional $8 billion dollars financing to achieve a long-stalled ninth review of the International Monetary Fund’s bailout package. The statement came after a recent review of IMF’s scheduled press conference on Thursday.
IMF confers that Pakistan needs “significant additional financing” before IMF could agree upon the pending bailout funds that are crucial to resolve its balance of payment crises.
The IMF, spokeswoman Julie Kozack in her statement said that financing committed by Pakistan’s external partners has always been welcomed.
Saudi Arabia, United Arab Emirates, and China are critically evaluating and assisting Pakistan’s sluggish economy by providing continuous loans which could cover some of the funding deficits of the country.
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She also added that the large South Asian economy has been facing inflation since long where continuous series of injuries inflicted by earthquakes and gross flooding have fiercely attacked the already unstable economy.
On the other hand, finance minister of Pakistan Ishaq Dar, strongly states that Pakistan would not default economically,” with or without the IMF”. According to recent reports Pakistan’s central bank reserves have fallen to $74 million from $4.38 billion dollars.
“There are speculations that Pakistan could be among a few countries that would be next on a list like Egypt and Kenya that requires an abrupt debt restructure”, stated Deltcheva, Head of emerging market Debt at Candriam.
Pakistan has made significant progress in implanting the needed economic reforms, yet further financial assistance is vital to achieving a successful bailout review to ensure long-term economic stability.
