by Shahid Iqbal in Dawn, June 15th, 2023
KARACHI: Time is running out for Pakistan to convince the IMF to release the remaining $2.2 billion out of the $6.7bn bailout programme before June 30, said Moody’s in its latest report on Wednesday.

The rating agency has expressed fear that the country might face default in case of failure of the IMF programme. Finance Minister Ishaq Dar did hold several sessions but has failed to convince the top IMF officials for the completion of the 9th review essential for securing a staff-level agreement for the release of the $1.1bn tranche…..

Bloomberg quoted Grace Lim, a sovereign analyst with Moody’s in Singapore, saying the risks are increasing that Pakistan may be unable to complete the IMF programme that expires at the end of June……

The rating agency said that without an IMF programme, Pakistan could default, given its very weak reserves. …..

Along with the Moody’s, other rating agencies have been warning that Pakistan could default in case IMF refused to complete the bailout package…..

The Moody’s analyst said that Pakistan’s financing options beyond June are highly uncertain, even as its external repayments will remain significant over the next few years.

The financial sector in Pakistan believes that failure of the bailout package would put the country in hot water while the new government expected to come after general elections by the end of this year would not find it easy to steer through the disastrous economic conditions.
https://www.dawn.com/news/1759803