Pakistan inches towards default, claims Moody’s report

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Global rating agency Moody’s has said in its latest report that out of the $6.7 billion IMF bailout program for Pakistan, $2.2 billion is yet to be released and the time for this program is ending on 30 June. If the IMF program fails, Pakistan may face default.

According to ‘Dawn’, Moody’s has said that Pakistan has only two weeks left to sign an agreement with the IMF, if the agreement is not reached, there will be serious consequences for the economy. Notably, the bailout package will expire on June 30.The agency has warned that, without the IMF program, Pakistan could default due to its very weak reserves. Reports suggest that State Bank’s foreign exchange reserves are less than even 4 billion dollars.

Apart from Moody’s, other rating agencies are also warning that Pakistan could default if the IMF refuses to complete the bailout package.

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