Reprofiling debt by the billions

As the spectre of a deadlier conflict in the Middle East looms following the killing of a Hamas leader in Iran, with potentially horrific consequences for people and economies worldwide, Pakistan continues to grapple with its own set of challenges. Though not immune to the unsettling developments in the Middle East, brokerage houses foresee better times ahead for Pakistan, which has long been teetering on the edge. They believe Prime Minister Shehbaz Sharif’s government will secure the necessary support from China, Saudi Arabia and the United Arab Emirates for debt reprofiling in time to obtain the International Monetary Fund’s (IMF) board clearance for a 39-month $7 billion Extended Fund Facility. Unconfirmed reports indicate that the IMF board will meet later this month.