IMF made Pakistan dance
According to the report of Geo News, before starting the virtual meeting, the International Monetary Fund (IMF) has asked Pakistan to provide additional information regarding the steps taken by the government regarding the budget and other areas. At the same time, Jio has said in its report that if Pakistan has to avoid default, it needs a loan of $10 billion immediately and if this loan is not received, then Pakistan will default. A senior official of the Government of Pakistan has told Geo News that “Pakistan needs $8 to 10 billion to repay the outstanding debt and manage the current account deficit and if the Pakistan government’s debt payment with the IMF If things don’t work out, Pakistan will not be able to repay its debt.”
Problems in front of Shahbaz government
An official of the Pakistan Finance Department told Geo News that “IMF has asked for some additional information and they are sitting till late night in Finance Ministry only to send the reply to IMF.” On the other hand, it is very difficult for the Shehbaz Sharif government to accept the conditions of the IMF, but there is no other option left except not to accept the condition. According to Dawn report, Shahbaz Sharif’s government has agreed to increase the price of gas to meet the conditions of the IMF and a cabinet meeting is going to be held soon. At the same time, an official and diplomatic source in the government told Dawn that the fear of losing popularity before the elections has made the Shehbaz government run out of steam and that is the reason why the agreement between the Shehbaz government and the International Monetary Fund (IMF) Could not happen. Whereas, the IMF has made it clear that Pakistan will have to accept its conditions before any kind of talks can take place.
Difficult to meet IMF conditions
IMF has put 7 difficult conditions in front of the Shahbaz government and has made it clear that no talks of any kind will be done until the government fulfills those seven conditions. The conditions put forward by the IMF to the Pakistan government include complete removal of electricity subsidy, aligning gas prices to international market prices, freeing up the dollar completely. At the same time, experts say that if the conditions of the IMF are implemented, then there will be an outcry due to the increase in inflation in Pakistan.
How much time is left with Pakistan?
Pakistan has time left from the month of February to the month of June to avoid default and during this period, Pakistan will have to arrange $10 billion in any case, otherwise the situation will be worse than Sri Lanka. Therefore, the Government of Pakistan sent SOS (Save Our Soul) to the IMF to revive the stalled IMF program since last November. But, in response, the IMF has sent a list of seven tough conditions to Pakistan. At the same time, according to the report of The News, the State Bank of Pakistan, citing the latest figures, has said that Pakistan cannot get a new loan of $ 8 to 10 billion without the revival of the IMF program and to revive the IMF program. For that he has to obey all the seven conditions.
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Understand the reality of Pakistan
According to official figures, Pakistan has to pay $23 billion in the current fiscal year 2022-23, out of which it has already paid $15 billion as external debt repayment, Dawn reported. . In the first half of the current financial year, it has achieved a rollover of $6 billion, which it has received from Saudi Arabia and the UAE, so Pakistan still has to pay $9 billion. The Pakistan Finance Department official said that the government would require the balance repayment of $8 billion in the second half (January-June) period of the current financial year. Out of which the government has received a commitment to receive a rollover of $3 billion from bilateral creditors, coming by March 2023.