If Pakistan does not get IMF program, risk of default will intensify, international organization Bloomberg has sounded alarm.
ISLAMABAD: Report of intelligence wing of international organization Bloomberg has revealed in its report on Pakistan that if Pakistan does not get the loan program of the IMF, the risk of default will increase. Pakistan urgently needs to revive the IMF loan program to improve its economy.
Bloomberg writes in its report that there may be more economic difficulties for Pakistan in the new fiscal year starting July 1.
According to the report, another 900 million dollars have to be returned to Pakistan by the end of June, and 4 billion dollars have to be returned to Pakistan from July to December.
According to a Bloomberg report, if Pakistan’s foreign exchange reserves fall below $4 billion, the risk of default may increase. Pakistan may negotiate a new program with the IMF in October.
According to the report, Pakistan needs to secure the dollar by December, to avoid default, Pakistan needs constant support from friendly countries.
The international news agency Bloomberg has said in its economic report regarding Pakistan that Pakistan will have to maintain import restrictions, the State Bank will have to increase the interest rate from 21 percent, the weak rupee will lead to much higher inflation in fiscal year 2024. will cause
Bloomberg said inflation is currently expected to average 22 percent, after borrowing costs and import restrictions on raw materials will further weigh on output. Higher inflation will reduce consumption.
The report further states that if the IMF assistance does not come, the growth rate of the fiscal year 2024 will be much lower than the target.
A report by Bloomberg’s intelligence wing said higher interest rates would also increase the government’s debt payments.