Pakistan reaches agreement with IMF to resume loan
Al JazeeraIMF funds will help avert a potential default and pave the way for more aid from other institutions, friendly nations. Pakistan needs at least $41 billion in the next 12 months to repay debt and fund imports as foreign-exchange reserves shrink to a level that could only cover less than two months of imports. The nation’s dollar bonds due in December was indicated 2.2 cents higher at 90.04 per dollar, while debt due in April 2031 was quoted 0.2 cents higher. August Disbursement To win IMF’s accord, Pakistan has raised electricity tariffs and almost doubled diesel pump prices over the past two months even as inflation has accelerated to a 13-year-high. The $1.2 billion disbursement is expected in August after the IMF’s management gives final approval, according to a government official familiar with the matter.