Bloomberg also acknowledges Pakistan's progress towards managing its debt repayments and avoiding default


                                        by: Irfan Karim

Source: GEO News Pakistan

Pakistan will not default: Bloomberg Economics

A person shows US dollars at a currency exchange store in Manila, Philippines, October 21, 2022. — Reuters
A person shows US dollars at a currency exchange store in Manila, Philippines, October 21, 2022. — Reuters

  • Investors worried about debt repayment due in April 2024.
  • Islamabad needs more external aid to meet its obligations.
  • It expects IMF will release the remaining loan tranches.

Cash-strapped Pakistan is still reeling from the troubles which aren't over, however, it looks like the country of 220 million people will dodge default in the next six months, Bloomberg Economics reported Monday.

While it seems like the resumption of the International Monetary Fund (IMF) programme will help the country sail through the end of June investors are worried about a big dollar debt repayment due in April 2024 and are pricing those bonds at a distressed level.

This shows that Islamabad needs more external aid to meet its debt repayment obligations.

Bloomberg Economics projected that the lender of the last resort — IMF — will release the remaining loan tranches totalling $2.6 billion, given Pakistan's desperate need in the wake of cataclysmic floods, which caused damages worth $30 billion.

Moreover, a nod from the IMF will help unlock financing worth $5 billion from bilateral creditors and $1.7 billion from the World Bank. All these funds will help cover debt payments worth $5.9 billion and estimated twin deficits by the end of the ongoing fiscal year 2022-23.

                                            ************************

        For more reading on details of Pakistan National debt, repayments and how                    Pakistan   can    avoid default, read earlier Blog by the Irfan Karim 



The writer can be approached at irfankarim33@gmail.com

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