Pakistan is planning to request a loan of at least $6 billion from the IMF to help cover its debt obligations for the year.
The country will aim to discuss an Extended Fund Facility with the IMF, with talks expected to commence in March or April.
Last year, Pakistan narrowly avoided default with a short-term IMF bailout, and the upcoming government will need to secure a long-term agreement for economic stability.
Measures such as budget revisions, an increase in interest rates, and utility price hikes were required by the IMF prior to the bailout.
Securing financial support from international partners will be a critical priority for Pakistan’s new government due to its vulnerable external position, as per ratings agency Fitch.
Failure to reach a new agreement with the IMF could heighten the risk of default and increase external financial strain.
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