The condition of the Government of Pakistan, which is facing severe economic crisis, has become like hanging. Pakistan’s financially weak Shehbaz Sharif government is in dire need of a bailout, for which it needs to reach out to the International Monetary Fund (IMF). IMF is also ready to provide financial assistance to Pakistan, but it has also placed some conditions along with the loan, due to which the situation of Pakistan has become like a snake swallowing a mole. If the government accepts the terms, it could face a crushing defeat in the next election and risk defaulting on its loan if it does not.
Pak of IMF. A strict condition has been placed before the government. According to media reports, the International Monetary Fund (IMF) has placed seven conditions against Pakistan, which the Pakistani government is refusing to accept. Because if he accepts the conditions of IMF, then he will have to face defeat in the elections. Now let’s talk about whether to accept the conditions imposed by the IMF or not, on this issue the Government of Pakistan is in limbo. In fact, the IMF has placed conditions on the Government of Pakistan such as withdrawing electricity subsidy, linking gas prices to the international market and free-floating dollar. And accepting it can cause political loss to the Government of Pakistan.
Way out of the crisis. Tough
Pakistan accepted the terms of the IMF in 2019 and got around Rs 48,000 crore. But now the elections are round the corner and the economic crisis is troubling differently. In this, the Sharif government does not want to take any risk in the elections by accepting the harsh conditions of the IMF. There are reports that the IMF will not release more money until the government fulfills its promises.
IMF approved the review of the package in August
The IMF’s board approved the seventh and eighth review of Pakistan’s bailout package in August, allowing a cash release of over Rs 8,000 crore. Pakistan’s Electricity Regulatory Authority had already allowed Sui Northern Gas Pipeline Limited and Sui Southern Gas Company to hike power tariffs by up to 75 percent, subject to cabinet approval. Islamabad is waiting for the 9th review of the loan that the previous government signed with the IMF. After review, IMF can release the next installment amount to Pakistan.