IMF doubts cash-strapped Pak's repayment capacity

The IMF has said that Pakistan faces major debt-repayment challenges and expressed serious doubts over the cash-strapped country's capacity to repay the global lender, according to a media report on Saturday.

The Washington-based bank's assessment of Pakistan's economy came as an IMF support team reached the country on Friday to hold talks with officials here after Islamabad requested a fresh bailout package under the Extended Fund Facility (EFF). "Pakistan's capacity to repay the fund is subject to significant risks and remains critically dependent on policy implementation and timely external financing," Geo News cited the lender as saying in its staff report.

"Exceptionally high risks - notably from delayed adoption of reforms, high public debt and gross financing needs, low gross reserves and State Bank of Pakistan's net FX derivative position, - could jeopardise policy implementation," read the report.