Former Vice President of FPCCI Atif Ikram Sheikh on Sunday said the agreement with the IMF is likely to be restored in a few days, which will reduce the country’s problems and help restore the confidence of the business community.
A twenty-fourth agreement with the IMF is needed immediately after the restoration of the current agreement because it is impossible to repay old debts without new debts, he said.
Atif Ikram Sheikh who has also served as President ICCI and Chairman PVMA said in a statement issued here today said that the current IMF program will end in June, but Pakistan will need at least $36 billion in 2023-24 to pay loans.
Managing 36 billion dollars without the IMF umbrella will be impossible to obtain, he said, adding that Pakistan’s current account deficit will be at least ten billion dollars, which will also be a challenge.
The business leader said that the ninth review of the IMF was to be held in September 2022, but the conditions of this institution were not followed, and the reforms were not implemented.
The ninth review has been stalled for more than six months due to neglect, and the country is getting closer to default every day.
He said Pakistan needs at least $73 billion in the next three years to clear the debt and if the current account deficit remains at twenty billion dollars in three years, it will reach 93 billion dollars.
It will be very difficult for Pakistan to repay loans unless debt restructuring and re-profiling is ensured, he observed.
Atif Ikram Sheikh said that currently the level of Pakistan’s debt is considered unsustainable by almost all the stakeholders given that the size of the economy which has contracted and growth is likely to be minimal.
