In particular, (i) export growth is likely to come to a halt due to the fall in external demand; (ii) remittances are expected to drop by over US$5 billion during FY 2020 and FY 2021 as activity in GCC countries declines; and (iii) outflows from non resident holdings of domestic treasuries could continue, despite having experienced $2.0 billion in outflows so far. This scenario will result in new external financing needs of about US$2.0 billion (0.8 percent of GDP; SDR 1,400 million) in Q4 FY 2020. It is envisaged that these urgent external financing needs will be met through the use of Fund credit under the RFI and fresh resources of around US$250 million committed by multilateral partners.
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