Moody’s Investors Service has warned that the chances of success of Pakistan’s bailout program with the International Monetary Fund (IMF) have diminished.
Talks on a $6.7 billion bailout program between Pakistan and the IMF are ongoing, but according to Moody’s, the program is in trouble.
Moody’s analyst Grace Lim said there is a strong possibility that Pakistan will not be able to complete the IMF program that expires at the end of June.
He said that without the IMF programme, Pakistan could go bankrupt as its foreign exchange reserves are very low.
It should be noted that Pakistan is making last efforts to restore the bailout program with the International Monetary Fund.
The $2 billion payments and exchange rate policy are major hurdles in the recovery process.
Pakistan has to repay foreign debts of 23 billion dollars in the current fiscal year, which is 5 times more than Pakistan’s foreign exchange reserves.
On Monday, State Bank Governor Jameel Ahmed dismissed reports of debt restructuring as false, saying that the debt of $900 million will be repaid in June, while the payment of $2.3 billion will be deferred.
setTimeout(function(){
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version=’2.0′;
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window,document,’script’,
‘https://connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘836181349842357’);
fbq(‘track’, ‘PageView’);
}, 6000);
/*setTimeout(function(){
(function (d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s);
js.id = id;
js.src = “//connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.11&appId=580305968816694”;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));
}, 4000);*/