Pakistan Crisis: Poor Pakistan will have to wait more to get loan, IMF has put a new condition

Pakistan Crisis: Poor Pakistan will have to wait more to get loan, IMF has put a new condition

Pakistan Economy Crisis: International Monetary Fund (IMF) has put another condition for giving loan to poor Pakistan. Since the beginning of February, discussions are going on between Pakistan and the IMF regarding the release of a loan of $1.1 billion. The fund is part of the $6.5 billion bailout package approved by the IMF. If IMF issues this loan then Pakistan’s economy can get a lifeline. 

Pakistan has made many economic changes to get loan from IMF. In this, ranging from imposing tax on electricity, huge increase in fuel prices and increase in other taxes. No amount has been released by the IMF to Pakistan, for which discussions are going on between the two. Meanwhile, the IMF has set new conditions. 

What condition did the IMF put 

According to PKRevenue’s report, International Monetary Fund has sought external finance assurance before taking any step to release bailout installment to Pakistan. This means that Pakistan will have to give assurance on external funding. IMF Director of Strategic Communication Julie Kojack said that before issuing the next bailout to Pakistan, it will have to be seen whether we have finance assurance or not. 

IMF seeks $7 billion assurance 

IMF is demanding an assurance of 7 billion dollars from Pakistan, but the Finance Minister of Pakistan is talking about keeping it up to 5 billion dollars. According to Pakistan’s Geo News, after the deal with the IMF, the country’s foreign exchange reserves will increase. 

Pakistan passing through high inflation 

Significantly, the IMF is discussing with the authorities to release bailout funds for Pakistan. At present, there are many challenges in Pakistan like slow economic growth, huge debt and high inflation rate, due to which the cost of things has reached a high level. 

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