Islamabad: US-based financial news service, Bloomberg has dismissed reports speculating that Pakistan was heading towards default, warning of economic hardship in near future.
In a report issued by Bloomberg Economics said that Pakistan is likely to dodge default in the next six months, but its troubles are not over.
â€œThe prevailing economic conditions will require assistance from International Monetary Fund (IMF),â€ the report stated, adding that the assistance from the Monetary Fund will help the country through the end of June.
According to the report, the investors are now worried about a big dollar debt repayment in April 2024, and are pricing those bonds at a distressed level. â€œIn this regard, Pakistan needs more external aid,â€ it maintained.
The report further stated that the country, which suffered over $33 billion in losses consequent to the unprecedented floods, needs loan from the IMF to recover the damages. â€œThe Fund would issue loans based on country needsâ€, it added.
â€œThe IMF funding is also necessary to unlock $5 billion in financing expected from creditor nations and $1.7 billion in aid from the World Bank,â€ the report stated.
The report further stated that these funds will help cover $5.9 billion in debt payments and estimated account deficits through the end of the fiscal year ending in June and. â€œBut the question now is how Pakistan will get through the 12 months after that, when its dollar financing needs will total at least $11 billion,â€ it claimed.