IMF Will Now Give Loan To Pakistan

Why Pakistan Must Prioritize Dialogue with IMF Beyond Election Outcomes, Says Bloomberg

Last Updated on: 9th February 2024, 11:42 pm

The current status of Pakistan’s external debts remains uncertain and unstable, raising concerns about the nation’s financial trajectory.

As reported by global media outlet Bloomberg, irrespective of the outcomes of the upcoming elections, engaging in dialogue with the International Monetary Fund (IMF) is deemed crucial for Pakistan.

Why Pakistan Must Prioritize Dialogue with IMF Beyond Election Outcomes?

Bloomberg’s analysis underscores Pakistan’s looming challenge of meeting numerous financial obligations within the next six months. Rochard Yasai, a Fund Manager at Asia Frontier Capital, stressed the imperative for Pakistan, regardless of the government’s composition, to initiate a new bailout program.

Yasai expressed apprehension regarding Pakistan’s precarious external debt situation, asserting that the government must take significant steps in the coming months. He emphasized the necessity for a comprehensive and sustainable debt program to stabilize the country’s financial standing.

Highlighting the paramount importance of dialogue with the IMF for Pakistan’s economic future, a Bloomberg representative reiterated that election results should not overshadow this crucial aspect.

Check also, U.S. Emphasizes Pakistani Autonomy in Choosing Leadership

Yasai further pointed out that Pakistan’s stock exchange presents an affordable market amidst the global financial turmoil. The country’s market valuation and income ratio are currently at their lowest levels, partly attributed to political and economic uncertainties impacting stock prices on the Pakistan Stock Exchange.

Additionally, the Bloomberg representative suggested that Pakistan’s interest rates may potentially decrease in the next 9 to 12 months, offering a positive outlook for the country’s economic landscape.

Bloomberg’s insights emphasize the urgency of addressing Pakistan’s external debts and engaging in substantive dialogue with the IMF. According to their analysis, the outcome of the upcoming elections should not detract from the immediate economic challenges that Pakistan must confront in the next six months.

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