Pakistan to repay its obligation to IMF on time – Alfalah Securities Limited
Karachi: International Monetary Fund (IMF) has stated that Pakistan has to repay its loan as per schedule to the Fund on an obligation basis and would not be delayed even if the country succeeded in receiving a new loan program.
According to Alfalah Securities, Pakistan’s total obligation to the IMF stands at USD 7.2 bn under the Standby Arrangement (SBA) however, the Fund has held up further disbursements to the country owing to lack of confidence in the government to meet the SBA conditions. Pakistan has to repay an obligation of USD 1.4 bn in CY12 and the repayment schedule would commence from Feb 24th 2012 whereas, repayments of USD 1.49bn would be made in CY13, USD 0.779bn in CY14 and the remaining USD 122.34 mn in CY15. Alfalah Securities expects the loan repayment to the IMF would severely devalue Pak Rupee against USD which would result in a capital flight from the country.