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Economics

Pakistan Could Default Without IMF Bailout Loans, Moody’s Warns

  • Nation’s financing options beyond June are highly uncertain
  • Reserves enough to cover only about one month of imports
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Source: Bloomberg

Pakistan could default without an International Monetary Fund bailout as its financing options beyond June are uncertain, Moody’s Investor Service said.

“We consider that Pakistan will meet its external payments for the remainder of this fiscal year ending in June,” said Grace Lim, a sovereign analyst with the ratings company in Singapore. “However, Pakistan’s financing options beyond June are highly uncertain. Without an IMF program, Pakistan could default given its very weak reserves.”