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