Fitch Ratings disclosed that Pakistan must make debt payments totaling $3.7 billion in May and June, per a Bloomberg report. A bailout package from the International Monetary Fund (IMF) is currently being sought by the Pakistani government at the time of this.
Pakistan is required to make $700 million in debt payments in May and another $3 billion in June, according to Krisjanis Krustins, a director at Fitch Ratings. According to a separate report from Fitch Ratings, China is expected to offer Pakistan $2 billion in loans and deposits that will be rolled over.
For almost six months, Pakistan and the IMF have been negotiating to restart a $6 billion bailout. As a result of its limited foreign exchange reserves, Pakistan is currently at risk of default. In order to avoid this, Pakistan obtained crucial financial support from China and Middle Eastern nations.
According to Fitch Ratings, Pakistan and the IMF will probably reach an agreement on the program review. The fact that Fitch downgraded Pakistan’s rating in February indicates that the risk of default or debt restructuring has increased.
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