KARACHI: Pakistan is likely to secure fresh funding from the International Monetary Fund (IMF) to shore up its reserves and boost donor and investors confidence in July or August after formation of a new coalition government in June, a report published by the Standard and Poor’s Ratings Services revealed.
Timely parliamentary elections and a credible government are crucial for Pakistan to obtain fresh external funding and address its dwindling foreign exchange reserves, the report titled “Successful elections are crucial as Pakistan’s balance of payments pressures mount,” revealed.
“Little likely improvement in Pakistan’s trade and capital flows, and lack of alternative sources of bilateral or multilateral funding makes it imperative for the country to secure fresh IMF funding to shore up its reserves and boost donor and investor confidence,” Standard and Poor’s credit analyst Agost Benard said.
Securing access to renewed external funding is likely only after a new government takes office following the parliamentary elections scheduled for May 11, 2013. It will also require credible plans to correct Pakistan’s unsustainable fiscal and economic policies.
Internews
