An expected IMF loan package is likely to include an interest rate increase of up to 150 basis points, a government official who declined to be identified said on Monday. Pakistan is facing a balance-of-payments crisis and has been in talks with the International Monetary Fund (IMF) but it says it hopes to avoid having to go to the IMF and is trying to secure help from allies and other multilateral lenders.
The country needs $3.5 billion to $4.5 billion quickly to fill a financing gap and $10 billion to $15 billion to avoid a balance of payment crisis and make adjustments over the next two years.
The government official said the size of a possible IMF loan had not been officially agreed but it was likely to be a 2-year facility and would include steps to tighten monetary policy. On interest rates, the official said: "It is my understanding that the discount rate will be increased by 100 to 150 basis points."
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