“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.