Could Pakistan’s $7 billion IMF bailout package be facing difficulties? | Business and Economy Updates

Pakistan is still waiting for the International Monetary Fund’s approval for a $7 billion loan programme despite reaching a staff-level agreement in July. The delay has raised speculation about whether Pakistan has failed to meet the IMF’s bailout conditions. Deputy Prime Minister Ishaq Dar accused the IMF of deliberately delaying the release of funds, hinting at geopolitical factors at play. Pakistan has been grappling with economic struggles exacerbated by political instability, pushing the country to the brink of default. While a new loan programme was agreed upon in April, Pakistan’s failure to meet key IMF demands such as obtaining additional financing and securing debt rollovers from bilateral lenders, remains a hurdle. The uncertainty surrounding the IMF approval has rattled stock markets and raised concerns about the future of the programme. Pakistan’s external debt and repayment obligations, combined with geopolitical factors and unrealistic fiscal targets set by the IMF, have contributed to the delay. Experts warn that failure to secure the IMF deal could have disastrous consequences, pushing Pakistan towards default. Despite having some breathing room until November for further negotiations, ongoing IMF support or external debt restructuring may be necessary to avoid financial collapse.

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