Debt Repayment: Pakistan Needs $123 Billion, New IMF Deal Likely

(Digital Itla) Pakistan's chances of breaking free from the grip of the IMF over the next five years remain limited, as the country faces external financing requirements of $123 billion during this period. Pakistan may have to turn to the IMF repeatedly to manage its debt repayments.

According to sources, the current $7 billion loan program is scheduled to end in September or October next year. For the upcoming fiscal year, Pakistan's external financial needs are estimated at $21.2 billion. This requirement could spike to a record $29.88 billion in FY 2027-28. Furthermore, external financing needs are projected at $23.59 billion for FY 2028-29, $22 billion for FY 2029-30, and will reach $26 billion by 2031. Although authorities claim that funds are currently available for immediate external debts, documents show an estimated current account deficit of $3.6 billion for the next fiscal year. The IMF has stressed maintaining a flexible exchange rate. Meanwhile, the government has set the US dollar rate at PKR 290 for the next budget, projecting a 3.5% depreciation of the rupee, which currently hovers around PKR 278.42 in the interbank market. The federal and provincial governments are also expected to borrow $3.2 billion in foreign loans next year.