Islamabad: Fitch Ratings and Moody’s Investors Service warned of continued threats to Pakistan’s financial sustainability, despite country receiving much-needed $ 3 billion lifeline from International Monetary Fund (IMF) over weekend.

Pakistan signed short-duration (nine-month) worth $ 3 billion loan programme with IMF last week, following revival of $ 7 billion programme that was officially ending prematurely same day.

But two global rating agencies reminded of continued risks to South Asian economy as government stares at $ 25 billion debt repayment hurdle in year starting July.

“Pakistan will require significant additional financing besides IMF disbursements to meet its debt maturities and finance an economic recovery,” Krisjanis Krustins Director of sovereigns for APAC at Fitch told Bloomberg.

“While IMF likely sought and received assurances for such financing, there is risk that this could prove insufficient, particularly if current account deficits widen again.”

Published in The Daily National Courier, July, 04 2023

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