Moody's Investors Service has warned that Pakistan is at an increased risk of failing to restart its $6.7 billion bailout programme with the International Monetary Fund (IMF).
Pakistan faces about $23 billion of external debt payments for the fiscal year 2023-24 which commences in July. On Monday, State Bank of Pakistan (SBP) Governor Jameel Ahmad denied officials were seeking debt restructuring talks as the country will pay $900 million of sovereign debt in June and expects $2.3 billion of obligations to be rolled over.
“There are increasing risks that Pakistan may be unable to complete the IMF programme that expires at the end of June," said Grace Lim, a sovereign analyst with the rating company in Singapore. “Without an IMF programme, Pakistan could default, given its very weak reserves."
Pakistan faces about $23 billion of external debt payments for the fiscal year 2023-24 which commences in July. On Monday, State Bank of Pakistan (SBP) Governor Jameel Ahmad denied officials were seeking debt restructuring talks as the country will pay $900 million of sovereign debt in June and expects $2.3 billion of obligations to be rolled over.