Dr Shamshad Akhtar, Pakistan’s Finance Minister, has ruled out altering the nation’s credit agreement with the International Monetary Fund (IMF).
Pakistan IMF loan programme: This indicates that Pakistan will not ask for an expansion of the program’s scope or a longer timeline.
Presently, Pakistan and the IMF are discussing at the staff level on a $3 billion backup arrangement (SBA) programme. The anticipation is that the negotiations would conclude on November 15.
In addition, Dr. Akhtar has stated that following the IMF evaluation, she will offer recommendations on how to bridge Pakistan’s external financial shortfall.
For the current fiscal year, Pakistan needs to secure $18 billion in external loans.
This comprises $5 billion in commercial loans, $1.5 billion in international bonds, $11 billion in rollovers of deposits and commercial refinancing from bilateral friends, and $500 to $750 million from the Islamic Development Bank (IsDB).
Fluctuating oil prices and rising US interest rates jeopardize Pakistan’s capacity to obtain this funding.
“If these risks are mitigate, Pakistan can secure the funding it needs to prevent a severe shortage of external financing.”
