New York July 6 2022: Pakistan 5-year Credit Default Swap (CDS) plunged 2,913 basis points since IMF deal to 3,893 basis points on Wednesday 6th July 2023 as country is inching towards IMF deal.
The CDS is down 8,495 basis points from its peak hit on November 11 2022 as per data published by Bloomberg.
The IMF Executive Board meeting to consider a $3 billion loan program for Pakistan will be held on July 12, the Washington-based lender said in an emailed statement yesterday.
On June 29 2023, IMF team has reached a staff-level agreement with the Pakistani authorities on a nine-month Stand-by Arrangement (SBA) in the amount of SDR2,250 million (about $3 billion or 111 percent of Pakistan’s IMF quota). The new SBA builds on the authorities’ efforts under Pakistan’s 2019 EFF-supported program which expires end-June. This agreement is subject to approval by the IMF’s Executive Board, which is expected to consider this request by mid-July.
PM Shehbaz Sharif said last week that Pakistan expects to receive $1.1 billion from IMF a few days after the board approval.