Former finance minister Miftah Ismail has said that Pakistan would have to enter another International Monetary Fund (IMF) programme after the current one ends in June due to declining foreign exchange reserves.

“When this [programme] ends in June, we will probably not have much more than $10 billion in reserves, if that. That would be about a month and a half of import cover,” he said while speaking to DawnNews. Consequently, the country would have to approach the World Bank and the Asian Development Bank for loans, which would require it to enter another IMF programme.

“Because of the debt repayment we have to do now — about $20bn for the foreseeable future — I am pretty sure we will have to have back-to-back IMF programmes.”

Terming the IMF a lender of last resort, Ismail said it was similar to being admitted to the intensive care unit (ICU). “You want to avoid going to the ICU, you have to start living a healthy life. Once we start living within our means, once we start pursuing rational and intelligent economic policies, then we can avoid going to the IMF.

“But if we continue living as we are, going from one boom-bust cyle to another, IMF is the lender of last resort and we have to keep going to it,” the former finance minister added.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

A new chokepoint
Updated 24 Jul, 2026

A new chokepoint

WITH free transit of vessels through the Strait of Hormuz blocked due to the US-Iran conflict, a new chokepoint has...
Improved rating
24 Jul, 2026

Improved rating

S&P GLOBAL’S decision to upgrade Pakistan’s long-term sovereign credit rating to ‘B’ with a stable...
More firetraps
24 Jul, 2026

More firetraps

WHILE it was already apparent that death traps dot Karachi, a safety audit by the Sindh government has thrown up...
De-escalation efforts
23 Jul, 2026

De-escalation efforts

WHILE the exchange of fire across the Gulf — and the wider Middle East — continues between the US and Iran,...
Time to integrate
23 Jul, 2026

Time to integrate

PAKISTAN remains one of the least regionally integrated economies in Asia. The trade figures for the last fiscal ...
Modi unnerved
23 Jul, 2026

Modi unnerved

DISCONTENT is visible in India. Delhi has been on the boil since last month. As thousands took to the streets ...