Pakistan Economic Crisis: Pakistan, desperate for every penny, is once again on the way to bankruptcy. The International Monetary Fund (IMF) has warned about the economic situation of Pakistan in its recent report. The IMF said in its report released on Friday that the economic threat to Pakistan is at an exceptionally high level. This report has come just before the organization’s final talks with Pakistan, in such a situation some experts believe that the IMF is also in no mood to give loan.
In the report of the International Monetary Fund, concern has been expressed about the instability of the Pakistan government. An IMF delegation is going to reach Pakistan this month, but now this report has increased the concerns of the Shahbaz government. After the final review of loans to Pakistan under the standby arrangement, the IMF said that ‘downside risks remain exceptionally high’ in Pakistan. The IMF also said that the Government of Pakistan has indicated its intention to continue the standby arrangement, but Pakistan remains politically unstable.
IMF is hesitant in giving loan
Pakistani newspaper Dawn reported that the IMF feels that Pakistan’s political instability and high costs may impact economic policy. Apart from this, hesitation has also been expressed in the report regarding giving loan to Pakistan. IMF said that high commodity prices and tight global financial conditions could prove worse for Pakistan which is facing cash crisis.
Pakistan got loan last month
In fact, last month, Pakistan had received the last tranche of $3 billion bailout package from the IMF, due to which Pakistan was narrowly saved from default. After receiving the last installment of the bailout package, the Prime Minister of Pakistan has once again requested for a loan from the IMF. The government of Pakistan is expecting a loan of at least 6 billion dollars from the IMF. Apart from this, Pakistan’s focus is on long term debt.
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