{"id":16085,"date":"2023-05-09T20:34:17","date_gmt":"2023-05-09T15:34:17","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=16085"},"modified":"2023-05-09T20:34:17","modified_gmt":"2023-05-09T15:34:17","slug":"pakistan-faces-default-risk-without-imf-loan-moodys","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/business\/pakistan-faces-default-risk-without-imf-loan-moodys\/","title":{"rendered":"Pakistan faces default risk without IMF loan: Moody’s"},"content":{"rendered":"

Pakistan faces default risk without IMF loan: Moody’s. Moody’s Investor Service has warned that without an International Monetary Fund<\/a> (IMF) programme Pakistan could default as its financing options beyond June are “uncertain”, Bloomberg reported.<\/p>\n

\u201cWe consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” sovereign analyst with the ratings company in Singapore Grace Lim said.<\/p>\n

\u201cHowever, Pakistan\u2019s financing options beyond June are highly uncertain. Without an IMF programme, Pakistan could default given its very weak reserves.\u201d<\/p>\n

Rising political tensions ahead of elections due this year are adding to the risk of a delay in the loan, as former prime minister Imran Khan is showing no signs of backing down against the government.<\/p>\n

The coalition government is struggling to revive a $6.5 billion IMF bailout programme, which had stalled after the government failed to meet some loan conditions.<\/p>\n

Read more:\u00a0Pakistan unlikely to get IMF loan anytime soon<\/a><\/strong><\/em><\/p>\n

Dollar bonds due in 2031 were indicated at 34.58 cents on the dollar on Tuesday near the lowest since November. The rupee has been trading near a record low.<\/p>\n

“An engagement with the IMF beyond June would support additional financing from other multilateral and bilateral partners, which could reduce default risk,” Lim, in an emailed response to questions, said.<\/p>\n

It should be noted that Pakistan\u2019s foreign-exchange reserves \u2014 which stand at $4.5 billion \u2014 remain extremely low and sufficient to cover only about one month of imports, she said.<\/p>\n

According to S&P Global Ratings, Pakistan\u2019s gross external financing needs as a proportion of current-account receipts plus usable reserves is estimated to rise to 139.5% in fiscal year 2024 from 133% in 2023.<\/p>\n

\u201cWe consider the IMF programme to be a foundation for important fiscal policy reforms,\u201d said Andrew Wood, a sovereign analyst at S&P in Singapore.<\/p>\n

\u201cAgreement on the current review cycle could also coalesce more confidence for other bilateral and multilateral lenders to Pakistan.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Pakistan faces default risk without IMF loan: Moody’s. Moody’s Investor Service has warned that without an International Monetary Fund (IMF) programme Pakistan could default as its financing options beyond June are “uncertain”, Bloomberg reported. \u201cWe consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” sovereign analyst […]<\/p>\n","protected":false},"author":8,"featured_media":16086,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[7021,2666,7689,1247,160,138],"class_list":["post-16085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-export","tag-imf-programme","tag-imports","tag-international-monetary-fund","tag-imf","tag-pakistan"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/16085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=16085"}],"version-history":[{"count":0,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/16085\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/16086"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=16085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=16085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=16085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}