Islamabad (Web Desk): Revenue-raising measures will likely be among prior actions that the International Monetary Fund (IMF) requires before releasing the next tranche of financing to Pakistan, Moody’s Investors Service said in a statement on Friday.
“Pakistan’s government liquidity and external vulnerability risks are elevated, and there remains considerable risks around Pakistan's ability to secure required financing to fully meet its needs for the next few years,” Moody’s said.
The credit rating agency added that the IMF — in its statement — noted that considerable progress was made during the visit on policy measures to address domestic and external imbalances, “there is no certainty yet on whether, and if so when, IMF financing will be forthcoming”.
“The financing from IMF, which is likely to also catalyse funding from other multilateral and bilateral partners, is crucial to alleviate Pakistan’s liquidity stresses,” Moody’s added.
“Pakistan’s external position is under significant stress, following delays in securing official sector financing which have driven a continued decline in Pakistan’s foreign exchange reserves.”
The country’s economy is in dire straits, stricken by a balance-of-payments crisis as it attempts to service high levels of external debt amid political chaos and deteriorating security.
Inflation has rocketed, the rupee has plummeted and the country can no longer afford imports, causing a severe decline in the industry.
