New York November 16 2022: Pakistan 5-year Credit Default Swap (CDS) increased 1,929 basis points in a day to 7,550 basis points on Tuesday 15th November 2022 due to delay in negotiations with IMF for the release of next tranche amid declining reserves.
Pakistan’s formal talks with the International Monetary Fund (IMF) on the 9th quarterly review of the Extended Fund Facility (EFF) have been delayed further amid authorities’ request for a series of waivers on performance criteria owing to flood losses and the Fund’s push for sticking to committed tax-to-GDP ratio of at least 11 percent.
“Circumstances are difficult but we have to remain in the IMF programme and make more structural adjustments,” said State Minister for Revenue Dr Aisha Ghaus Pasha.
SBP foreign exchange reserves for the week ending November 4 2022, were decreased by USD 956 million to USD 7,957 million as per data released by the Central Bank.
Reserves decline due to external debt payments includes repayment of Governments commercial loans, according to State Bank of Pakistan. However, refinancing of these loans is in process which will improve foreign exchange reserves in the coming weeks.
