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Yet Another Tall Claim Falls Flat as Naya Pakistan Turns to IMF for Bailout

Yet Another Tall Claim Falls Flat as Naya Pakistan Turns to IMF for Bailout

Rida Khalid
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The government has taken a decision to get in touch with the International Monetary Fund (IMF) to come up with a solution to Pakistan’s financial crisis.

Finance Minister Asad Umar recently uploaded a video on PTI’s official Twitter handle announcing that the government would be discussing the possibility of a bailout program.

He said: “The prime minister… after consulting everyone decided today that we should open talks with the IMF. The negotiations will be aimed at reaching a “stabilization recovery programmed” which can be used to tackle the economic crisis.”

He claimed that the distribution would be implemented equally ensuring that the burden does not fall on the low-income classes. This agreement is said to be aimed at bringing Pakistan out of the long-standing crisis left by the previous governments.

Umar also pointed towards a theme being followed as each government in Pakistan’s history has approached the IMF during their tenure since 1990.

Umar stated that PTI intends to break this cycle and bring Pakistan out of the IMF programs altogether. To accomplish this, they are meant to meet the World Bank this week. Umar did not mention the exact amount Pakistan intends to seek from the IMF, however, analysts and experts have provided a ballpark figure of 12 billion dollars.

However, an internal member claimed that Pakistan intends to seek no more than 7 billion.

Imran Khan also mentioned during a speech in the previous week that Pakistan may be seeking similar loans to help come out of the crisis it has been for years. He intends to reserve the funds as opposed to continue asking neighbouring and friendly countries for help.

It is evident that Pakistan has and is facing economic challenges; the growth of the economy seems to be on a constant downward gradient with little in reserves and many deficits. The intent of the new government is to come up with policies that are not short-lived and promise the stability of the economy in the long run. IMF has stated that if such a decision is delayed any further, the inflation may rise more than it already has and further slow down the growth of the economy.

State Bank of Pakistan has recently experienced a large drop coming from 627.7 million dollars to 8.4 billion dollars because of the external debts.

It is anticipated that if the government delays their decision to tackle the situation it is bound to only get worse with no solution.

The financial sector has urged the government to put an end to their inactivity and act fast if they wish to ensure the preservation of an already deteriorating economy.

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Rida Khalid
Rida Khalid

An English Literature graduate with a passion for Psychology. An avid reader, writer, poet (self-proclaimed) and part-time fitness trainer. Currently working with NIC, Lahore. I spin words to make my narcissistic wit sound like diffident profundity. The above feels a lot like braggadocio, meh!

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