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

Pakistan plans to take at least $6 billion in new loans from the International Monetary Fund (IMF) to help the incoming government repay billions of dollars of outstanding debt this year, Bloomberg News quoted a Pakistani official as saying on Thursday. Used to be.

The report said the country would like to negotiate an extended fund facility with the IMF, with talks with the global lender expected to begin in March or April.

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

Ahead of the bailout, the South Asian nation had to take several measures demanded by the IMF, including revising its budget, raising its benchmark interest rate and increasing electricity and natural gas prices.

IMF staff continue to dialogue with authorities on the necessary long-term reform efforts, a spokesperson for the fund said, including, if requested, supporting the post-election government through a new arrangement to address Pakistan’s ongoing challenges. Funds are available to do so.

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

Rating agency Fitch on Monday said Pakistan’s weak external position means that securing financing from multilateral and bilateral partners will be one of the most pressing issues facing the next government.

It added, “A new deal is critical to the country’s credit profile, and we believe it will be achieved within a few months, but prolonged negotiations or failure to secure it would increase external liquidity strains and lead to default.” The probability will increase.”