Pakistan to dodge short-term default as political turmoil grows

Financial aid: A banner in Lahore in conjunction with Pakistan’s Independence Day celebrations. The country is expected to win a loan approval from the IMF board, paving the way for the release of US$1.2bil (RM5.36bil) in immediate funds. — AFP

ISLAMABAD: Pakistan is poised to evade a near-term default amid expectations the International Monetary Fund (IMF) will resume its US$6bil (RM26.8bil) bailout programme, but a rally in the nation’s assets may fizzle out amid escalating political tensions.

Columbia Threadneedle Investments, Tellimer Ltd and Natixis SA predict Pakistan will win a loan approval from the IMF board when it meets today, paving the way for the release of US$1.2bil (RM5.36bil) in immediate funds.