ISLAMABAD - Pakistan will"absolutely not" default on debt obligations despite catastrophic floods, the finance minister said on Sunday, signalling there would be no major deviation from reforms designed to stabilise a struggling economy.
Pakistan was able to bring an International Monetary Fund programme back on track after months of delay, thanks to tough policy decisions. But the positive sentiment was short- lived before the catastrophic rainfall hit. However, he estimated the current account deficit will not increase by more than US$2 billion following the floods.
The IMF said on Sunday that it will work with the international community to support Pakistan's relief and reconstruction efforts and the endeavour to ensure sustainability and stability. The three announced interest in investing in Pakistan earlier this year, but no timelines or exact plans have been reported yet.