Former State Bank of Pakistan (SBP) deputy governor Dr Murtaza Syed said that Pakistan will require another IMF program in June 2023 due to the country’s significant needs for external financing and debt repayments, emphasizing that this was the worst economic crisis the country had ever experienced.
The former SBP deputy governor, while talking to Bloomberg TV on Thursday, said Pakistan has “$10-12 billion due in debt repayment over the next six months and $35 billion worth of annual external financing needs for next three years. We will need another IMF program after June.”
Given the already declining macroeconomic indicators, Syed acknowledged that Pakistan was not yet prepared for a hard reset but added that “we have seen other countries do the right thing after suffering economic crises similar to the one being experienced by Pakistan right now, and that’s what gives me hope.”
“This is the worst economic crisis in history steered by domestic and global reasons,” he added.
The former SBP governor was of the view that Pakistan needed immediate debt relief. He said the country has to make lofty debt repayments and cannot make fiscal adjustment without debt relief.
He was of the view that the common man would be burdened beyond capacity if Pakistan failed to secure relief.
“If this issue is not resolved, then there will be a lost decade for Pakistan,” he said.
Syed, who also briefly served as SBP’s acting governor, said the IMF was close to resuming its bailout program for Pakistan as the government has completed the prerequisites after passing a “difficult” mini budget.
