Pakistan may default without IMF deal, Bloomberg

Islamabad: While sounding the alarm for Pakistan's economy, the famous US magazine Bloomberg said that if no agreement is made with International Monetary Fund (IMF), the situation may worsen in the country, while Pakistan can negotiate with IMF on a new program in October.

According to the report of Bloomberg Intelligence Unit, if Pakistan does not get the IMF program, the economic conditions may deteriorate further. Pakistan can negotiate a new program with IMF in October, and support from friendly countries is also needed to avoid default.

The report stated that, not having an agreement with the IMF will increase the risks of Pakistan defaulting, which may cause more economic difficulties for Pakistan in the new financial year.

It has also been added in the report that Pakistan has to return another 900 million dollars by the end of June, whereas $4 billion have to be returned from July to December.

If the foreign exchange reserves fall below four billion dollars, the risk of default may increase, it added.

According to Bloomberg report, Pakistan needs to secure dollars by December.