Former Deputy Governor of National Bank of Pakistan (SBP) Dr. Mortaza Saeed said that Pakistan needs another program from International Monetary Fund (IMF) in June 2023.
Speaking to Bloomberg TV on Thursday, the former SBP deputy governor said Pakistan “needs $10-12 billion in debt servicing in the next six months, and $35 billion in external funding annually over the next three years.” . From June onwards, a separate IMF program is required. “
His comments come while Islamabad is still involved with the International Monetary Fund in a three-year financial assistance program to open the next installment.
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Asked whether Pakistan is ready for a hard reset, Saeed said it would be difficult given the worsening macroeconomic indicators, but said, “an economic crisis similar to what Pakistan is currently suffering from.” It takes. I’ve seen other countries do what’s right. After suffering through it, and that’s what gives me hope.”
He added: This is the worst economic crisis in history, which was caused by domestic and global reasons.
According to him, Pakistan needs immediate debt reduction. He said that the country has to provide a large amount of debt and cannot make financial adjustments without reducing the debt.
He expressed his opinion that if Pakistan cannot provide relief, the civilians will have a heavy burden beyond their capacity.
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“If this issue is not resolved, it will be a lost decade for Pakistan,” he said.
Saeed, who also briefly served as acting head of the SBP, said the International Monetary Fund is looking to resume its aid program to Pakistan after approving a “difficult” small budget with prerequisites completed.
He predicted that global lenders would soon release the next tranche.
