Pakistan might sign an agreement with the International Monetary Fund (IMF) in June to restore the country’s fading economy. Currently, the country is cash-strapped, and only IMF can provide the bailout package. Finance Minister Miftah Ismail informed the media about the decision.
Pak has often sought international aid for its ailing economy. The conversation with the IMF will take place in Qatar’s capital Doha. Ismail claimed that the country needs USD36-37 billion in foreign financing in the upcoming fiscal year.
Finance Minister, Miftah Ismail, spoke at a webinar on the National Dialogue on Economy, the Way Forward For Pakistan. He said, “Currently, the government’s focus was not raising new debt from the global capital market and commercial banks. Pakistan’s international bonds lost almost one-third of their value, while their yields significantly grew.”
The Finance Minister says that the government’s priority was controlling inflation and economic growth. According to him, inflation control will lead to economic growth. Ismail said Pakistan would repay USD 21 billion in foreign debt in the upcoming fiscal year when he gave a breakdown of the external finance demand. Furthermore, the economy will require an additional USD 10-15 billion to cover the current account deficit. In 2023, the administration wants to increase Pakistan’s foreign exchange reserves by USD 5 billion to USD 15 billion.
IMF Loan Crucial For Pakistan
According to Ismail, the IMF loan program, worth USD 6 billion, will be a big helping hand for Pakistan. Pakistan’s conversation with the global crisis lender began on May 18 in Doha. Moreover, the Finance Minister has invited all political parties to frame the Charter of Economy. It would enclose the minimum economic plan while setting aside the political disparities.
Furthermore, Saudi Arabia has consented to supply Pakistan with a ‘sizeable package’ of USD 8 billion. The money would help in reviving Pakistan’s ailing economy. It would also enable the cash-starved country to strengthen its declining forex reserves. Pakistan hooked the deal when the newly appointed PM Shehbaz Sharif visited Saudi Arabia.
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