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Pakistan Refutes IMF Report as It Eyes Bonds, China Funding

  • De-facto finance minister says deficits will be controlled
  • Pakistan won’t go back to the IMF, may issue Panda bond
Karachi, Pakistan.

Karachi, Pakistan.

Photographer: Asim Hafeez/Bloomberg

Updated on

Pakistan’s de-facto finance minister refuted an International Monetary Fund assessment that the country’s economy was deteriorating and said plans to issue dollar bonds or Chinese-currency bonds haven’t been firmed up.

The IMF in a statement this week said the South Asian nation’s economy faces continual “erosion” and its widening external and fiscal imbalances mean that “risks to Pakistan’s medium-term capacity to repay the fund have increased” since completion of a three-year $6.6 billion bailout program that ended in Sept. 2016. Pakistan’s current-account deficit could reach 4.8 percent of gross domestic product in the year ending June, the IMF said.