Pakistan to return back $3 billion loan to IMF

Pakistan to return back $3 billion loan to IMF
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*ISLAMABAD - Pakistan to return back around $3 billion to the IMF over next three years starting from upcoming financial year 2019-20 so with possible size of $6 billion bailout package, half of the amount will go back to the Fund on account of previous outstanding loans and liabilities, The News has learnt.*

Now Pakistan and the IMF have formally confirmed kick-starting parleys here from next week to make efforts for striking a staff level agreement.

“Pakistan’s net financing requirement has been estimated at over $8 to $10 billion in next fiscal year so Islamabad will have to heavily rely upon traditional lenders such as WB, ADB and others as well as international capital market to generate funding even after entering into IMF programme,” official sources told The News.

The IMF programme helps countries build story on economic front to lure international investors to generate funding.

“Pakistan will have to pay back $800 million to IMF in 2019-20, $1 billion in 2020-21 and another $1 billion in 2021-22,” a top official said.

In the aftermath of meeting held between IMF Managing Director Christine Lagarde and Prime Minister Imran Khan in Beijing on the sidelines of Belt and Road Forum (BRF), IMF on Friday confirmed that its mission would be visiting Islamabad from coming Monday (April 29) for holding parleys on fresh bailout package.

Economy