Wednesday, December 6, 2023

IMF revises Pakistan’s foreign loan requirement of USD 25 billion

- Advertisement -

The International Monetary Fund (IMF) has revised Pakistan’s foreign loan necessity for the current fiscal year to USD 25 billion, marking a reduction of USD 3.4 billion. Additionally, Pakistan’s economic growth projection to just 2 percent.

According to sources within Pakistan’s Finance Ministry, the International Monetary Fund (IMF) has revised its inflation forecast for the country to 22.8 percent for the current fiscal year, down from the initial projection of 25.9 percent. Notably, the IMF did not endorse the Finance Ministry’s estimates for the current account deficit (CAD), imports, economic growth, inflation, and gross financing requirements.

Nevertheless, these adjustments were made during the initial review discussions, contrasting with the figures provided in July of this year.

The revisions, including those to the gross external financing requirements (which encompass the funds required to cover the current account deficit and repay the maturing debt, as well as the macroeconomic projections, were part of the first review of the USD 3 billion bailout package conducted this week.

The global lender achieved success in securing a date for the general elections, opting to overlook certain crucial areas that had been stumbling blocks in the past, contributing to the failure of the previous USD 6.5 billion bailout package.

The IMF has, in comparison to July 2023, lowered the foreign loan requirements for this fiscal year from USD 28.4 billion to USD 25 billion–a reduction of USD 3.4 billion.

Also Read: Maldives formally asks India to withdraw its military presence

Catch the live updates on NewsX

Latest news

Related news