Sign in Subscribe
  • E-Papers
    • Profit Magazine
    • Pakistan Today
  • Headlines
  • Featured
  • Opinion
    • Comment
    • Editorial
  • Tech
    • Artificial Intelligence
  • World
  • Satire
Sign in
Welcome!Log into your account
Forgot your password?
Create an account
Sign up
Welcome!Register for an account
A password will be e-mailed to you.
Password recovery
Recover your password
Search
Sign inSubscribe
Profit Profit by Pakistan Today
Profit Profit
  • E-Papers
    • Profit Magazine
    • Pakistan Today
  • Headlines
    • Headlines

      Aurangzeb defends FBR powers, says focus is on tackling sales tax…

      Headlines

      Government fixes ex-mill sugar price at Rs165/kg following deal with industry

      Headlines

      University of Sargodha, Chinese tech school to launch joint lithium battery…

      Headlines

      CCP cracks down on anti-competitive practices, slaps Rs1.007 billion in fines…

      Headlines

      Business and transport bodies unite for July 19 strike over Finance…

  • Featured
    • Editor’s picks

      Legal battle casts shadow on cement recovery

      Editor’s picks

      Punjab continues to struggle against plastic

      Editor’s picks

      Power sector circular debt has reached its Rubicon

      Editor’s picks

      Dolmen REIT shines through

      Construction

      Kohat Cement to enter the real estate development market

  • Opinion
    • AllCommentEditorial
      Comment

      Unlocking Pakistan’s digital potential: why a smarter approach to 5G is…

      Comment

      Pakistan’s tech sector: From outsourcing hub to global innovation partner

      Editorial

      Painfully Deja Vu

      Editorial

      Growth on paper, stagnation on ground

  • Tech
    • AllArtificial Intelligence
      Headlines

      Bitcoin hits all-time high of $120,000 as US regulatory discussions loom

      Tech

      America’s move to rebuild its manufacturing sector is the right strategy,…

      Headlines

      Google to expand AI Overview ads to Pakistan

      Tech

      Elon Musk says he does not support Tesla-xAI merger

  • World
  • Satire

Pakistan may need to knock at IMF’s door

The trade gap has swelled driven by rising imports, which caused the widening of the current account deficit to $14 billion during the first ten months (July-April) of the outgoing financial year 2017-18

By
Monitoring Desk
-
June 2, 2018
0
414
Facebook
Twitter
Linkedin
WhatsApp
Email

    KARACHI: After the completion of PML-N’s five-year tenure on Thursday, the balance of payment position has been left dented by rising debt obligations which could force Pakistan to seek an IMF bailout.

    According to analysts, the State Bank of Pakistan (SBP) has $4 billion in reserves which are enough to provide import cover of one month, reported The News.

    Also, $8.5 billion in external debt repayments are due at end of June.

    The next government is expected to take power after the July 25th general elections and analysts believe they would have their work cut out due to a balance of payment challenges.

    The trade gap has swelled driven by rising imports, which caused the widening of the current account deficit to $14 billion during the first ten months (July-April) of the outgoing financial year 2017-18.

    And external debt and liabilities surged 51 percent in five years of the PML-N tenue, touching $92 billion.

    An analyst at Tresmark declining to be named said “It is almost certain that we will need another bailout package from the IMF… which essentially means that the PML-N government was not successful in turning the economy around.”

    He added the PML-N government failed to address the actual problems for the economic woes and had been generally worse off in the last five years.

    Pakistan is burning through $250 million on an average of a monthly basis, which has contributed to foreign exchange reserves falling to thee years lows despite having obtained $9.5 billion of loans in last ten months.

    In September 2016, the country had successfully concluded a $6.7 billion three-year loan facility with the IMF.

    However, senior economist at Standard Chartered Bank Bilal Khan said the market welcomed the government’s effort to have concluded an IMF program and reach macro-economic stability.

    He added that a more flexible exchange rate could have eased external-account pressures which had been ratcheting up since last year.

    In last five years, the rupee depreciated by 16.6 percent against the dollar and presently its rate against the greenback stood at around 115.60.

    Khan shared considering the demanding balance-of-payments position, he expected additional rupee weakness in 2018 and further monetary tightening.

    Chief executive officer EFG Hermes Pakistan Muzzamil Aslam said he foresaw 5 to 10 percent currency depreciation in the time ahead.

    Mr Aslam said if the balance of payment gap persisted, the currency would have to take a hit and the recent rise in policy rate was just a start before eventually going to the IMF.

    • TAGS
    • balance of payments crisis
    • IMF bailout
    • International Monetary Fund (IMF)
    • Pakistan's current account deficit
    • State Bank of Pakistan
    • Trade deficit
    Facebook
    Twitter
    Linkedin
    WhatsApp
    Email
      Monitoring Desk
      Our monitoring team diligently searches the vast expanse of the web to carefully handpick and distill top-tier business and economic news stories and articles, presenting them to you in a concise and informative manner.

      RELATED ARTICLESMORE FROM AUTHOR

      Headlines

      IMF approves final $1.1bn tranche for Pakistan

      Economy

      IMF maintains Pakistan’s economic growth forecast at 2% for FY24

      Top News Updates

      Naya Pakistan Certificates rate of return revised again to foster investment

      Whatsapp Newsletter
      Email Newsletter News Tips
      Profit by Pakistan Today
      Publishing Editor: Babar Nizami -- Editor Multimedia: Umar Aziz Khan -- Senior Editor: Abdullah Niazi -- Editorial Consultant: Ahtasam Ahmad -- Business Reporters: Taimoor Hassan | Shahab Omer l Zain Naeem | Nisma Riaz | Mariam Umar | Hamza Aurangzeb | Shahnawaz Ali | Ghulam Abbass | Ahmad Ahmadani | Aziz Buneri -- Sub-Editor: Saddam Hussain -- Video Producer: Talha Farooqi -- Director Marketing : Mudassir Alam | Regional Heads of Marketing: Agha Anwer (Khi) | Kamal Rizvi (Lhe) | Malik Israr (Isb ) -- Manager Subscriptions: Irfan Farooq -- Pakistan’s #1 business magazine - your go-to source for business, economic and financial news.
      Contact us: [email protected]
      • Privacy policy
      Copyright © 2025. Pakistan Today. All Rights Reserved.