Pakistan may default if IMF negotiations with IMF fail, states Bloomberg Intelligence report

Pakistan may default if IMF negotiations with IMF fail, states Bloomberg

Internationally acclaimed financial news service Bloomberg has provided a worrisome picture of Pakistan’s financial outlook by stating that if the country does not form an agreement with International Monetary Funds (IMF), it could lead towards default.

In its Intelligence report, Bloomberg said Pakistan could hold talks with IMF in October. It added that Pakistan would need the help of other friendly states to avoid default. The report stated that new fiscal year would bring new challenges for the country that can be encountered if Pakistan secures IMF agreement.

While talking about numbers, the report stated that by the end of June, Pakistan has to return 900 million dollars. During the time period between July and December, Pakistan will have to pay back 4 billion dollars. The report clearly explained that If the foreign exchange reserves fall below 4 billion dollars, the risk of default will increase. Hence in December, Pakistan would be on the brink of default and requires countermeasures to overcome the situation.

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