KARACHI – Pakistan has taken several stern measures to push through a series of economic reforms in line with the economic reform program tabled by the International Monetary Fund.
A report by Brokerage Topline Securities titled ‘Pakistan IMF Loan Review: Funding Requirement, Primary Deficit, Gas Pricing & Monetary Policy’ suggests that South Asian nation is set to receive the next tranche of bailout funds of $700 million from the global lender.
It said the country of nearly 240 million met targets for net international reserves, net domestic assets, and foreign currency swap/forward position as of the end of June 2023. The government, however, missed the targets for the primary deficit.
The crisis hit nation secured nine-month Stand-By Arrangement (SBA) from the IMF worth $3 billion earlier this year, and State Bank received $1.2 billion in July 2023.
Meanwhile, the interim setup is looking for other loans of around $5.7 billion to boost foreign inflows of for FY24. Pakistan’s reserves decline in recent times, and amid the absence of additional foreign currency inflows, the country faced massive blows.
The second tranche will temporarily boost the dilapidating reserves but there is a dire need for massive funding as the country has to repay $10.35bn in debt servicing till December this year.
