fbpx
  • About us
  • Advertise
  • Contact
  • Nominate
  • Client’s Voice
  • Login
  • Register
📖 Magazine
The Global Economics
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
The Global Economics
No Result
View All Result
Home Non Banking Funds

Pakistan shut out of bond markets – USD6 billion bailout from IMF is the only resort

Finance Minister says IMF loan is the only option to save the economy

Sunil Bolar by Sunil Bolar
May 30, 2022
in Funds, The Global Economics, Trending
Reading Time: 2 mins read
0
Pakistan shut out of bond markets - USD6 billion bailout from IMF is the only resort

Pakistan shut out of bond markets - USD6 billion bailout from IMF is the only resort

44
SHARES
244
VIEWS
FacebookTwitterRedditWhatsAppLinkedInShare Link

Pakistan Finance Minister Miftah Ismail said that the Pakistani government is unable to secure funding from commercial banks and the global bond market, making it imperative to sign an agreement with the International Monetary Fund (IMF).

The Pakistani government raised fuel prices, which was a key benchmark in order for the IMF to resume its loan program. The move also caused Pakistan’s dollar bonds, which had reached a record low, to gain last Friday. The government is aiming to secure a staff-level agreement with the IMF by June, according to sources familiar with the matter.

The USD6 billion bailout program for the country had been stalled after former Prime Minister Imran Khan had reduced and frozen fuel prices. Shehbaz Sharif, Khan’s successor, banned the import of luxury goods, and the Pakistan Central Bank raised borrowing rates more than expected, in a move to counter record high import levels.

In a statement, Ismail said that Pakistan required between USD36 billion and USD37 billion in funding for the fiscal year starting June. A deal from the IMF for the troubled nation would help it secure funding from other sources such as the World Bank, and friendly nations such as China.

Pakistan shut off from global bond market

Pakistan’s Finance Minister Ismail also eliminated raising funds from the global bond market, and also from commercial banks that had provided the country with short-term loans in the past. The decision was made after the country had selected banks like JP Morgan Chase & Co, Citigroup Inc., Credit Suisse Group AG, and Standard Chartered Plc to manage any bond sales.

The financing from the IMF will enable the country to bolster its foreign exchange reserves to approximately USD15 billion next fiscal, from approximately USD10 billion currently. This year, Pakistan faces USD3.2 billion in dollar debt, which is the highest amount in a decade.

Acting Central Bank Governor Murtaza Syed told analysts and investors that the nation’s financing requirements will be comfortable once it secures the IMF loan program.

Saudi Arabia has agreed to provide the country with a considerable bail-out package of around USD 8 billion to help the cash-starved country shore up dwindling forex reserves and revive its troubled economy.

Pakistan secured the deal when Prime Minister Shehbaz Sharif visited Saudi Arabia. The financial package includes doubling of the oil financing facility, additional money either through deposits or Sukuks and rolling over of the existing USD 4.2 billion facilities.

 

Via: short URL
Tags: bailoutchinaeconomyIMFPakistan
Sunil Bolar

Sunil Bolar

Sunil is a creative person who combines his love for writing with tech and business.

Related Posts

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds
Funds

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds

by Riya Thomas
March 24, 2023
China’s March Towards Automobile Dominance
Clean Energy

China’s March Towards Automobile Dominance

by The Global Economics
March 24, 2023
Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market
Real Estate

Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market

by Rahil Adnan
March 24, 2023
Singapore Dethrones Tokyo to Take Its Place as Second-Most Expensive Business Travel Destination in Asia
Tourism

Singapore Dethrones Tokyo to Take Its Place as Second-Most Expensive Business Travel Destination in Asia

by Rahil Adnan
March 23, 2023
EV Charger Makers Brace For Slowdown As New Made-In-America Rules Kick In
Energy

EV Charger Makers Brace For Slowdown As New Made-In-America Rules Kick In

by Anuj Singh
March 22, 2023
Previous
Next
Facebook Twitter Instagram Youtube LinkedIn Soundcloud
The Global Economics

The Global Economics Limited is a UK based financial publication and a quarterly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

DMCA.com Protection Status

  • Privacy
  • Legal
  • Terms of Use
  • Client’s Voice
  • Server Status

norton verified - the global economics

Latest Posts

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds

March 24, 2023
China’s March Towards Automobile Dominance

China’s March Towards Automobile Dominance

March 24, 2023
Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market

Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market

March 24, 2023
Download The Global Economics PWA to your mobile or Desktop
PWA App Download
Download The Global Economics Android App to your mobile or Desktop
Android App
Download The Global Economics IOS App to your mobile or Desktop
IOS App

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

No Result
View All Result
  • About us
  • Awards
  • Magazine
  • Client’s Voice
  • Exclusive Coverage
  • Nominate
  • Login
  • Sign Up

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

Welcome Back!

Sign In with Facebook
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00
Go to mobile version