- Pakistan, which is going through economic crisis, got a big relief
- IMF helped Prime Minister Shahbaz Sharif after many pleas
- Many conditions were placed in this three billion dollars given to Pakistan
Pakistan, which is going through economic crisis, has got a big relief. IMF has given him a loan of 3 billion dollars. IMF has helped Prime Minister Shahbaz Sharif after many pleas. It is known to all that Pakistan was going through a lot of economic situation for some time and was trying to get help from IMF. A day ago the IMF has given him a lifeline of three billion dollars.
For the past few months, talks were going on between Pakistan and the IMF regarding an agreement. This money has not been given to Pakistan as an Extended Fund Facility. The IMF has attempted an emergency bailout. He has tried to give emergency money to Pakistan otherwise Pakistan could have been totally ruined.
But here too, many conditions have been placed in this three billion dollars given to Pakistan due to which again Pakistan may have to face many difficulties. In such a situation, what is the final situation and why it can increase the problem of Pakistan.
3 billion dollar loan under stand by agreement
The IMF has entered into a stand-by agreement with Pakistan under which it has been given a loan of $3 billion. The IMF says that this may ameliorate Pakistan’s ongoing balance of payments crisis to some extent and also provide some relief to Pakistan’s depleted foreign exchange reserves. Let us tell you that the IMF will not give this money to Pakistan at once but will give it in pieces over 9 months.
IMF gave more money than expected
Earlier it was being said that Pakistan could get 2.5 billion dollars but the IMF gave it more money than expected. But the big thing about this is that when the IMF gives money to someone, it puts a lot of conditions. The IMF has issued a statement saying that the government of Pakistan should not spend unnecessarily. Use this money where it is most needed. Government of Pakistan used to give many subsidies to its people, it has to stop all those things.
What conditions were set by the IMF?
The subsidy given by the government in the power sector has to be abolished now. People have to pay the full bill now.
The Central Bank of Pakistan has to lift the import ban. What happens is that when a country has no foreign exchange reserves, it cannot order as much from abroad as if it did. So he has to pay in dollars but the government has no dollars at all.
The IMF has told the Central Bank of Pakistan that you have to remove all import restrictions imposed on you. The problem with this is that once it is removed, rich people will start ordering a lot. So where will Pakistan make that payment as it has only three billion dollars. Pakistan has reserves of $3.5 billion.
Another condition imposed by the IMF is that you have to peg your currency to the market rate. You can’t control it. Apart from this, the interest rate will have to be increased. Currently it is 22 percent. The IMF has said to privatize loss-making companies.
Pakistan will be destroyed due to these conditions
Due to all these conditions, opposition parties and experts say that due to this, Pakistan can be ruined. The people there will be devastated. Another question that arises in such a situation is whether the loan received is sufficient? In fact, the IMF has given more money to Pakistan than expected. He asked for $2.5 billion but the IMF helped with $3 billion.
