The government saved the country from imminent bankruptcy

Islam Abad (94 news) Pakistan paid for a billion dollar sukuk bond on Friday. According to the report of the State Bank of Pakistan, Pakistan has saved the country from the risk of immediate bankruptcy by paying the sukuk bond.

State Bank Spokesman Abid Qamar told Bloomberg that Pakistan transferred the payment of the sukuk bonds three days before their maturity to Citigroup Inc., which will then distribute the money to creditors. notes on Friday, according to indicative price data compiled by Bloomberg 98.9 Raised to cents, this October 83 From a record low of about cent 16 St. has returned.

The early repayment has helped avert the risk of near-term default, but concerns remain over Pakistan's ability to service its long-term debt. 2022-23 About $25 billion is required to be repaid, most of which has already been repaid.

Earlier during the post-monetary policy briefing, the State Bank chief said that funds have been provided through multilateral and bilateral sources to ensure that foreign exchange reserves are not affected by the disbursement. It should be noted that Pakistan was earlier this week from the Asian Infrastructure Investment Bank 500 Million dollars were also received while Saudi Arabia has also extended the period of deposits of three billion dollars with the State Bank.

Commenting on the development, Dr. Khaqan Hasan Najeeb, former advisor to the Ministry of Finance, said that it is indeed satisfactory that Pakistan has paid off the $1 billion sukuk ahead of schedule, thereby averting the risk of an immediate default. He added that policy makers should remember that Pakistan is facing a dollar liquidity crisis and to overcome this it is very important to stay with the IMF along with funds pledged by friendly countries and multilateral and bilateral partners. Some bold decisions like energy conservation, reallocation of public sector development program, expenditure control, tight fiscal to complement monetary policy and fast-track projects to get dollars are also necessary.