Moody's corporation response over proposed IMF package for Pakistan
Shares
*ISLAMABAD - Moody’s corporation has released its report over proposed IMF package for Pakistan.*
*Moody's corporation has stated that an IMF program for Pakistan would be a credit positive, providing immediate external funding.*
“An IMF program would be credit positive for Pakistan because access to a cheap, stable source of external financing would provide immediate support to the government’s external financing needs. Additionally, support and technical assistance from the IMF would aid macroeconomic rebalancing and the government’s structural reform agenda,” stated Moody’s.
“However, external and fiscal challenges remain, particularly in light of investments, imports and external borrowing related to projects under the China-Pakistan Economic Corridor (CPEC),” the rating agency added. Moody’s has projected that Pakistan need $30 billion to meet its external financing needs for fiscal year 2019.
“The financing gap – which excludes foreign-exchange reserves – is likely to total $8-$9 billions; taking into account the government’s borrowing plans and our expectations for capital inflows including foreign direct investment and portfolio flows,” stated Moody.
