Priyanka Tiwari
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Suspense crime, Digital Desk : The International Monetary Fund (IMF) is reportedly raising concerns over Pakistan's recent decision to significantly increase its defence spending in the new budget, especially as the nation continues to grapple with severe economic challenges. This scrutiny from the global lender comes at a critical time, with Pakistan actively seeking a new, more substantial bailout package.
According to a report by The Express Tribune, the nearly 15% hike in Pakistan's defence allocation has not gone unnoticed by the IMF. The Fund typically advocates for fiscal prudence and a reduction in non-developmental expenditures from countries receiving its financial assistance. An increase in military spending while seeking substantial aid could complicate negotiations for the new loan program.
Pakistan's government is under pressure to balance national security needs with the stringent fiscal discipline often required by the IMF as a condition for financial support. The IMF's observations suggest that Pakistani authorities may need to provide strong justifications for the increased defence outlay or potentially face tougher conditions in the upcoming loan agreement.
This development highlights the delicate tightrope Pakistan must walk: addressing its perceived security imperatives while simultaneously adhering to economic reforms necessary to secure vital international financial lifelines. The IMF's stance will be closely watched as it could significantly impact the terms and size of the next bailout.
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