ISLAMABAD: Pakis­tan plans to seek a new loan of at least $6 billion from the International Monetary Fund (IMF) to help the incoming government repay billions in debt due this year, Bloomberg News reported on Thursday, citing a Pakistani official.

The country will seek to negotiate an Extended Fund Facility with the IMF, the report said, adding that the talks with the global lender were expe­cted to start in March or April.

Although a default was averted last summer thanks to a short-term IMF bailout, but the programme expires in April and a new government will have to negotiate a long-term arrangement to keep the economy stable.

The country had to undertake a slew of measures demanded by the IMF, including revising its budget, a hike in its benchmark interest rate, and increases in electricity and natural gas prices.

The IMF and the caretaker finance minister did not immediately respond to a Reuters’ request for com­ment on the Bloomberg report. The country’s vulnerable external position me­ans that securing fina­ncing from multilateral and bilateral partners will be one of the most urgent issues facing the next government, ratings agency Fitch said on Monday.

“A new deal is key to the country’s credit profile, and we assume one will be achieved within a few months, but an extended negotiation or failure to secure it would increase external liquidity stress and raise the probability of default,” it said.

Published in Dawn, February 23rd, 2024

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

Opinion

Editorial

High cost of living
Updated 04 Oct, 2024

High cost of living

There will be no let-up in the pain of middle-class people when it comes to grocery expenses, school fees, and hospital bills.
Regional response
04 Oct, 2024

Regional response

IT is welcome that Afghanistan’s neighbours are speaking with one voice when it comes to the critical issue of...
Cultural conservation
04 Oct, 2024

Cultural conservation

THE Sindh government’s recent move to declare the Sayad Hashmi Reference Library as a protected heritage site is...
Judicial infighting
03 Oct, 2024

Judicial infighting

As other state institutions grow more assertive, continued failure to present a united front will increasingly endanger SC's authority.
Iranian salvo
Updated 03 Oct, 2024

Iranian salvo

With the US and UK egging on Israel, instead of reining in their rabid ally, it is difficult to foresee a negotiated denouement of this conflict.
Chance to play well
03 Oct, 2024

Chance to play well

THE announcement came without warning very late on Tuesday night. Merely six months since his reappointment and 11...