Achi news desk-
Islamabad (Newsdesk) Pakistan has formally requested an EFF bailout package of $6-8 billion from the IMF, with the possibility of increasing it further through environmental financing.
However, its actual size and timetable will only be decided when the parties agree on its main features in May 2024.
This representative sent a message to the Pakistani delegation that went to Washington, Pakistan has also requested to send an IMF review mission to Pakistan in May 2024 so that the details of the bailout package for the next three years can be decided.
Although Pakistani officials are trying to present a rosy picture of Pakistan’s economy to the IMF, the IMF’s Regional Economic Outlook for the Middle East and Central Asia has said that Pakistan’s external balance is in a precarious position, including Eurobonds reflecting repayment’ r current debt. .
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“Where inflationary pressures persist, monetary policy should remain tight and adopt a data-driven approach, closely monitoring risks to contain inflationary rises,” the report said.
These countries include Egypt, Kazakhstan, Pakistan, Tunisia and Uzbekistan, the Middle East and Central Asia geographical regions are affected by conflict and these regions include the Middle East, North Africa, Afghanistan and Pakistan , only MENAP in Sub-Saharan Africa Many conflicts have doubled since May 2010.
Furthermore, conflicts in these regions may last longer than in other regions, 6 economies away from the West Bank and Gaza and Pakistan are experiencing conflict since the beginning of 2024, these countries include Iraq, Pakistan , Somalia, Sudan, Syria and Yemen Included .
A country is considered to be in conflict when it has recorded 25 combat-related deaths between January 1 and March 8, 2024, as recorded by the Armed Conflict Location and Incident Data Project.
Economic performance in the region was predicted to improve in the case of Pakistan in 2023, but the 2024 forecast was nevertheless revised down to 2.6 percent, with lower hydrocarbon production in some economies weighing on growth.
Notably, the conflict between Gaza and Israel has exacerbated an already challenging situation, and disruptions in shipping through the Red Sea have added to the uncertainty.
Furthermore, the growth outlook describes Pakistan’s recovery as uneven against a backdrop of armed conflict, dependence on hydrocarbons and ongoing structural challenges.
Pakistan’s economy was estimated to grow by 2 percent in 2024 after contracting in 2023, and this was attributed to the agriculture and textile sectors.
According to the report, external buffers (foreign exchange reserves) in emerging markets and their frontier economies improved in 2023.
