Pakistan’s economy is in serious trouble, affected by the balance of payments crisis. (Document)
Washington:
The IMF said on Friday that progress had been made in crisis talks with cash-strapped Pakistan, but no deal was announced as it concluded an emergency visit to the country. Islamabad agreed a $6.5 billion loan package with the international lender in 2019 and is struggling to unlock a key cash round as the threat of national bankruptcy looms. .
“Significant progress has been made on the mandate on policy measures to address domestic and external imbalances,” the IMF statement said.
“Online discussions will continue in the coming days to finalize the implementation details of these policies.”
Pakistan’s economy is in dire straits, hit by a balance of payments crisis as the country tries to pay off high levels of foreign debt amid political turmoil and worsening security. .
The International Monetary Fund (IMF) delegation landed last week to deliver harsh conditions that Prime Minister Shehbaz Sharif called “unthinkable”.
Negotiations over the latest loan have been stalled for months, with the government begging friendly nations to help them avoid painful demands by global lenders ahead of elections due later in this year.
Analysts warn that denying conditions and pushing Pakistan to the brink will have severe political consequences for the ruling parties, but agree to the IMF’s cost-of-living measures. also.
On Thursday, the central bank released new data warning its foreign exchange reserves fell by $170 million in a week, to just $2.9 billion last Friday.
The IMF wants the nuclear weapons state to strengthen its disastrously low tax base, end export tax exemptions, and artificially raise the prices of gas, electricity, and gas to help families with disabilities. low income.
It is also pushing Pakistan to keep a sustainable amount of US dollars in the bank through guarantees of extra support from friendly countries Saudi Arabia, China and the United Arab Emirates, as well as the Bank World goods.
The world’s fifth most populous country no longer issues letters of credit, except for essential food and medicine, causing a backlog of shipping containers at the port of Karachi due to the country’s inability to pay.
Meanwhile, industries warn that congestion will increasingly force factories to close, affecting jobs.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
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