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Pakistan’s external debt necessity for this fiscal year has been revised to $25 billion by the International Monetary Fund (IMF), as reported by The Express Tribune newspaper. The reduction amounts to $3.4 billion. Furthermore, the IMF has downsized the country’s economic growth projection to a mere 2 percent. The Express Tribune is an English-language daily circulated in Pakistan.
According to sources from the Pakistan Finance Ministry, the IMF has also lowered its inflation forecast for the country for the ongoing fiscal year from 25.9 percent to 22.8 percent. The IMF refused to accept the Finance Ministry’s estimates for the current account deficit (CAD), imports, economic growth, inflation, and gross financing needs.
However, as per The Express Tribune, the IMF adjusted these figures during the first review discussions in comparison to the assessments made in July this year. The revisions to gross external financing requirements—funds necessary to replenish the CAD as well as repay maturing debt—and macroeconomic projections were made during the first review of the $3 billion bailout bargain this week.
According to The Express Tribune, the international lender successfully confirmed the date of the general election and, in the process, disregarded some crucial areas that had caused the collapse of the previous $6.5 billion bailout package in the past. It also brought the operations of the Special Investment Facility Council under its purview.
Finance Ministry spokesman Qamar Abbasi did not respond to requests for comment. The IMF has lowered the external borrowing requirements for this fiscal year from $28.4 billion to $25 billion, in comparison to July 2023, marking a decrease of $3.4 billion.
In the span of four months, the government has already secured $6 billion in borrowings, while it anticipates a rollover of $12.5 billion. Sources cited by The Express Tribune indicate that the remaining needs amount to approximately $6.5 billion, excluding efforts to secure a rollover for a $12.5 billion loan. (ANI)
(This story has not been edited by DavidDiscourse staff and is auto-generated from a syndicated feed.)