Pakistan’s financial situation is improving after the country received a $3 billion bailout from the International Monetary Fund (IMF) last month. This allowed billions of dollars in further financing support from countries like Saudi Arabia and the United Arab Emirates. It bears mentioning that Gulf countries and China have agreed to prolong debt payments on earlier loans to Pakistan.
Since the IMF loan, Pakistan’s foreign exchange reserves have nearly doubled to over $8 billion.
The country is currently in talks about commercial borrowing and anticipates selling dollar bonds and sukuk debt at the end of the fiscal year. SBP anticipates additional declines in dollar bond yields and forex reserves to surge above $10 billion by June 2024.