Pakistan has reached a critical balance of payments situation and will need another package from the International Monetary Fund before the end of the year to avert a crisis, one of the biggest lenders to the country said on Wednesday.
The Asian Development Bank’s country director, Werner Liepach, told Reuters in an interview Pakistan will need up to $9 billion from the IMF to shield the economy.
Pakistan currently has enough hard currency to cover only about two months of imports. Asked if the country, a key US ally, was in a balance of payments crisis, Liepach said: “It depends how you define a crisis. Maybe we are already in a crisis.”