Washington: Bloomberg has said in a report that Pakistan’s current foreign exchange reserves are enough to protect it from default for the next 6 months, so the risk has been averted for 6 months.
Bloomberg, an American broadcasting organization closely monitoring the global economy and trade, has said in an analytical report that Pakistan currently has foreign exchange reserves of $5.6 billion, which is enough to meet its funding needs for the next five months. means there is no risk of Pakistan defaulting for at least the next six months.
The report states that there is no risk of default, but Pakistan’s problems have not yet subsided. The resumption of the stalled IMF program is of utmost importance to the country.
The IMF’s funding also requires it to receive an expected $5 billion from lending countries and $1.7 billion from the World Bank, the Bloomberg report cited experts as saying.
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The Bloomberg report further said that the money will be received from the IMF by June this year, but Pakistan should increase its foreign exchange reserves to 14.9 billion dollars with the help of foreign aid, but that too only until March 2024, the dollar balance of payments Will be able to maintain.
The key question, the report said, is how Pakistan will meet the next 12 months, when its dollar financing needs will be at least $11 billion. Investors are now concerned about the big dollar debt repayments due in April 2024.
According to a Bloomberg report, the IMF may still freeze Pakistan’s outstanding $2.6 billion debt tranche, but may not do so in the wake of the devastating floods.
The report has said that the joint Geneva conference organized by Pakistan and the United Nations has become very important, in which there is a possibility of getting aid to Pakistan and Finance Minister Ishaq will also have an important meeting with the IMF delegation.
