Facing severe economic crisis, Pakistan looks for aid from the global body to finance them. Although not approved yet, the International Monetary Fund (IMF) has disclosed that the fund will be offered over a 3 year period.
It has taken months to negotiate the terms of this yet another addition to the arrays of economic assistance to Pakistan. According to IMF, Pakistan has a deteriorating economic state with poor foreign relations in terms of trade. Their excessive debt is yet another problem that the country is facing.
The fund will be strategized to strengthen the industrial sector of the country. The institutes and businesses will get the backing to stabilize Pakistan’s economic status. The conditions against this fund are highly rigid and the spending will be strictly monitored.
Political experts have stated that taking any further assistance from the IMF would hamper people’s faith in Imran Khan’s promises. Foreign communication with allies has been on the high since the Prime Minister was sworn in. This is perceived as a move to reduce the bailout fund derived from the IMF.
Pakistan’s trade is heavily affected due to failure of meeting payments alongside the mountainous debt that they owe. Their stagnating economic state is primarily due to the lack on foreign trade, forming a vicious circle that the country is being engulfed by.
The country’s economic growth is forecasted by IMF to be reduced to 2.9% against 2018’s 5.8%. This indeed projects the stagnant economic state of Pakistan that needs urgent financial aid.
Pakistan has now taken over 90 billion dollars in foreign loans and Abdul Hafeez Sheikh, Prime Minister’s economic advisor commented on their exports saying that in the last five years, the country has seen a negative growth.
In the wake of this economic crisis, the World Bank and the Asian Development Bank will offer 2 and 3 billion dollars respectively to Pakistan, along with the 6 billion dollars that they will receive from the IMF, stated Sheikh.