Pakistan Needs New IMF Program to Pay Previous Debt: Ex-SBP Governor

Pakistan has a complicated debt quandary to deal with as it needs fresh funds from the International Monetary Fund (IMF) to pay off previous debt to the lender, reported Bloomberg.

Former central bank governor Dr. Reza Baqir said in an interview with Bloomberg TV that Pakistan’s new government will immediately have to seek fresh negotiations with IMF for a new bailout as it owes the global lender “significant” debt.

According to Baqir, who retired as Governor State Bank of Pakistan (SBP) back in 2022, Pakistan must pay the IMF roughly $7 billion over the next five years.

The country’s current loan program with the IMF expires in March 2024.

Dr Baqir was appointed as governor of the SBP by the President on May 4, 2019, for a period of 3 years from the day he assumed office, which he did on May 5, 2019. His term ended in 2022 and was replaced by the senior-most deputy governor at the time Dr. Murtaza Syed on an interim basis.

Later that year, Jameel Ahmad was sworn in as SBP Governor. The incumbent has to date seen the key interest rise by 700 basis points from 15 percent at the time of his appointment to 22 percent (highest ever) in June 2023.

  • کیوں غزہ کے مسلمانوں کا خون پاکستان کا قرض بھی نہیں اتار سکا تو لعنت پاکستانی حکمرانوں پر.

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