Pakistan's economy suffers another blow

Pakistan's economy suffers another blow

ISLAMABAD - PTI government faces a steep decline of over $600 million in foreign currency reserves in the last 15 days.

Moreover Pakistan will have to repay over $2.522 billion loan in the shape of principal and mark-up amounts during three months period from September to November 2018. It will have to be paid to all international, multilateral and bilateral creditors as well as investors of sovereign bond holders.

“Now dollar inflows are required on immediate basis to avert eruption of full-fledged crisis keeping in view repayment requirements and steep depletion of foreign currency reserves,” top official sources said.

Within these three-month period, the PTI led government will have to take important decision either for knocking at the door of the IMF for seeking another bailout package or to get breathing space by relying upon friendly countries like Saudi Arabia and China for doling out $5 billion to $8 billion to narrow down the financing gap on external front.

The government also plans for launching the sovereign Euro and Sukuk bonds to get $3 billion as well as Pakistani Diaspora bond to generate $1 billion to $2 billion.

To ascertain the exact financing gap on external front, the IMF staff team is scheduled to visit Islamabad on September 27 this month and expected to stay for one week to gauge the actual economic position of the country on internal and external front of the economy.

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