Islamabad (TDI): Finance Minister Ali Pervaz Malik explained an in-depth briefing to the National Assembly’s Finance Committee today. He stressed the need for Pakistan to adhere to all International Monetary Fund (IMF) conditions to secure the next loan tranche.
The minister’s address outlined the critical state of the country’s financial obligations with $100 billion in debt repayments due over the next four years.
Minister Malik highlighted Pakistan’s immediate financial issues. He noted that the country must repay $18 billion in loans this year alone. “We cannot miss any single condition set by the IMF. The requirements are important for Pakistan’s fiscal stability and securing future.”
Also Read: IMF forecasts 3.5% Growth for Pakistan’s Economy in FY25
He admitted that Pakistan’s foreign reserves have increased to $9 billion from just $3 billion at the beginning of this year.
This adds safe deposits from friendly countries- $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from UAE. These reserves are not enough to meet the country’s financial responsibilities.
However, Pakistan faces a major gap between local and foreign debt repayment periods. Pakistan typically needs to repay local debt within six months and the foreign debt repayment timeline is two-and-a-half years.
It threatens to management of liquidity and financial planning.
He called for additional support from international allies. He stated that Pakistan’s long-term economic stability is on fulfilling INF conditions but also on strong partnerships with crucial nations and institutions.
Also Read: Pakistan To Retire Rs18.7tr Foreign Debt This Year
“We are in constant contact with our friendly countries to support our debt repayments,” the Finance Minister stated.
The Finance Minister ended his briefing by showing cautious optimism about Pakistan’s economic future.
Despite the challenges, Pakistan believes that with strategic financial management, adhering to IMF requirements, and maintaining international alliances, Pakistan can overcome the hurdles and stabilize its economy.
Also Read: Pakistan’s Debt Rises To Record Rs74.6 Trillion
He also announced that Pakistan is ready to explore new avenues for economic reforms. It focused on diversifying revenue streams, enhancing tax collection, and promoting foreign direct investment to reduce reliance on external borrowing.
