LAHORE: Pakistan requires to pay total of $ 3.7 billion of debt payments in months of May and June, Bloomberg quoted Fitch Ratings as said. “About $ 700 million of maturities are due in May and another $ 3 billion in June,” Krisjanis Krustins, Hong Kong-based director at Fitch said in an emailed response that was quoted by Bloomberg. According to report, Fitch expects $ 2.4 billion of deposits and loans from China will be rolled over. Debt payments underscore crucial need for Pakistan to resume its bailout programme with International Monetary Fund that has been stalled since November last year.

Successful staff-level agreement for 9th review will unlock $ 1.1-billion tranche. Currently, foreign exchange reserves held by State Bank of Pakistan are at $ 4.46 billion, barely enough for month of essential imports.

“Our base case is still that Pakistan and IMF will reach an agreement on programme review,” Krustins was quoted as saying. However, analyst warned that risks are large and rating cut in February reflected that default or debt restructuring is an increasingly real possibility for Pakistan.

Published in The Daily National Courier, May, 06 2023

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