Pakistan requests new IMF package to repay old debt

Pakistan’s government will need to start negotiations over a new loan package with the International Monetary Fund (IMF) to repay its “significant” payments due to the global lender, former central bank governor Reza Baqir said in an interview with Bloomberg TV on Thursday.

Pakistan has about $7 billion in payments due to the IMF in the next five years, while its reserves stand at $8 billion. Baqir emphasised the need for a new IMF package to repay the old debt and stated that it should be a priority for the new government.  The country’s current loan programme with the IMF ends next March.

“One of the first mandates for the new government will be negotiating a new IMF package.” Baqir said.

Without this financial support, the country risks economic instability. This underscores the significant IMF’s support to member countries facing financial difficulties.