Pakistan Economic Crisis IMF: Will Pakistan IMF Bailout Package End Economic Misery Amid Default Risk & Debt Crisis

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Islamabad: Pakistan is going through a severe economic crisis and the country is at risk of default. Meanwhile, after several pleadings by the Shehbaz government, the International Monetary Fund has now agreed on a fresh loan of $3 billion. Had Pakistan not got this loan, it would have defaulted. Pakistan is in a bad condition due to record inflation and lack of jobs due to which the youth are forced to leave the country. According to experts, after the agreement with the IMF, now the government of Pakistan will get some time and resources so that it can bring its economy back on track, but the danger is not over yet.

Pakistan is going through a severe economic crisis in recent years. Corruption, mismanagement, corona pandemic, global energy crisis and natural calamities have broken the back of Pakistan’s economy. The situation is that the GDP of Pakistan has come to a standstill. The inflation rate in Pakistan has reached 38 percent. On the one hand, while inflation is increasing in Pakistan, on the other hand, there has been a huge decline in the rate of wages. In this entire crisis, the poor of the country have been hit the most.
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The price of food grains in Pakistan has increased by 40 percent since June 2022 till now. Pakistani rupee is running in the abyss and foreign exchange reserves have come down to less than $ 4 billion. Karachi’s financial expert Khurram Hussain told the German media that this IMF deal is very important. This will avoid the crisis of balance of payments. Michael Kugelman, an American expert on Pakistani affairs, says, ‘It was a very important deal and Pakistan is going through a very serious economic crisis and now it has got time to fix it.’

Kugelman said that Pakistan’s economy is on life support and the assistance received from the IMF will give life to its essential parts. But the IMF has called for a reduction in spending, which will have a political cost. After this deal of IMF, now Pakistan is hopeful that it will also get loan from its friendly countries Saudi Arabia and UAE. China, Saudi Arabia and the UAE have promised billions of dollars in loans but have been reluctant so far. Pakistan has to repay a loan of more than $ 25 billion this year, due to which the crisis is not completely over yet.

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