Pakistan on the verge of dying of huge Pakistan needs immediate assistance due to cash crunch. General Asim Munir is currently in Saudi Arabia, meeting the Defense Minister, while Shahbaz Sharif is seeking help from Li Keqiang of China. However, all are pulling together due to Pakistan’s fiscal indiscipline and volatile political environment. There has been a complete failure on the part of the government to get foreign aid. The International Monetary Fund has also disappointed Pakistan.
It has taken Pakistan only half a year so far to receive money from the International Monetary Fund (IMF). Despite how difficult it was for him to deal with the IMF.
The IMF delegation met the country’s Finance Minister. This meeting taking place in Geneva on January 1 was part of a programme. IMF is struggling to give relief package to Pakistan.
A $6 billion loan was requested by Pakistan from the IMF. This help has not yet been approved for $ 1.1 billion. This amount was to be received in November.
PM Shahbaz met IMF chief Christina Giaregaeva on Friday. Shahbaz had requested to release the aid amount as soon as possible during this meeting.
Pakistan can receive assistance from the IMF only after the completion of the ninth review. International funding can be received only after this help.
IMF unhappy with track record
Pakistan’s track record is the biggest problem of Pakistan and IMF is not happy with it. IMF has stopped giving new installments of loan.
According to the organization, many promises made by the country to the borrowers have not been fulfilled. One organization wanted Pakistan to promise an increase in energy prices, new taxes and controls on the exchange rate.
This has not happened in the case of Pakistan. In his meeting with the IMF chief, Shahbaz sought some relief from the demands of the organisation. They believed that electricity had become very expensive and it was not possible to raise energy prices.
back breaking inflation
Pakistan is facing the brunt of inflation. The inflation rate had reached 24.5% in December. The rate of inflation rose so high because of the increase in food prices. In rural areas the situation was even worse.
There was an inflation rate of 28.8% here, while the cities had an inflation rate of 21.6%. Onion prices have increased by 415 percent in cities and 464 percent in villages.
Tea prices have increased by 64 per cent in the last one year. Pakistanis can no longer buy wheat. While wheat prices have increased by 57 per cent in a year, flour has become costlier by 41 per cent.
saudi arabia last hope
At present, Pakistan’s hopes rest entirely on Saudi Arabia. Saudi Arabia is expected to provide another $3 billion bailout package in the coming days, according to Finance Minister Ishaq Dar.
Aid to Pakistan will be at the discretion of Saudi King Salman. Additionally, Pakistan is planning to sell some properties abroad to raise funds.