Pakistan needs to repay $3.7bn debt by June, Fitch Ratings


Pakistan must pay $3.7 billion in debt obligations between May and June, according to Fitch Ratings, as the government tries to get a bailout from the International Monetary Fund (IMF)., Bloomberg reported on Friday.

Hong Kong-based director at Fitch, Krisjanis Krustins, said about $700 million of maturities are due in May and another $3 billion in June.

In an emailed response to questions, Fitch told Bloomberg that it expects $2.4 billion of deposits and loans from China will be rolled over.

During the entire current fiscal year, the country has been struggling to avoid default with the help of friendly countries and multilateral lending agencies but the next fiscal year is about to begin with another huge requirement of dollars.

In an interview with Bloomberg, a Fitch Rating official said Pakistan would have to repay $3.7bn up to June 2023. The Fitch official expects China would roll over a $2.4bn loan maturing next month.

Former finance minister Miftah Ismail recently told a private TV channel that the IMF should release the tranche since all the conditions have been met. Delaying the release of the tranche would have a bad impact on the economy.

However, the Fitch Ratings expects Pakistan and IMF to reach an agreement. Pakistan already received financial commitments from Saudi Arabia and UAE, it said.

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