Business
Pakistan close to get out of crisis: Bloomberg
IMF package is key to the recovery of Pakistan's $23 billion foreign debt.
Islamabad: Bloomberg said that Pakistan is close to getting out of crises as the bailout package of 03 billion dollars by International Monetary Fund (IMF) has passed the first stages of approval.
According to the details, IMF has completely prepared to take Pakistan out of the crisis.
Bloomberg has added that the package is being approved for nine months. On the basis of this approval, the risk of default will be avoided for Pakistan. The funding environment for Pakistan has already improved, it further said.
The report continued to tell that Pakistan's Fitch rating has already been upgraded, which will facilitate the launch of the bonds which are likely to be launched this week.
Pakistan's finance minister has confirmed that Saudi Remittances of two billion dollars have been received from Arabia. Prime Minister Shehbaz Sharif had made a special request to the IMF for bailout.
Bloomberg has also said that the bailout package was not initially on the agenda of IMF's executive board. In view of the election in October, the fear of crisis was escalate further. The government increased taxes and energy rates to meet IMF demands.
IMF package is key to the recovery of Pakistan's $23 billion foreign debt, which is six times higher than Pakistan's current foreign exchange reserves.