New Delhi: The IMF has been called upon by cash-strapped and therefore struggling Pakistan to be sent a rescue package because of the current financial crisis. The reports suggest that Pakistan is trying for a number that can be between USD 6 billion and USD 8 billion. The climate financing will certainly improve that number. In addition to that, the country has also requested an infant mission of the IMF to reach the conclusion of a three-year rescue plan with the help of the Extended Fund Facility during the next month. In May 2024, how the plan will be carried out is expected to be determined if one takes into account the outcomes of the issues at hand, Geo News reports.
A Financial Minister, Muhammad Aurangzeb, heads up a delegation presently in Washington to run the annual spring meetings of the IMF and World Bank. While Pakistan presents a rosy picture for the economy, the recent Iranian Regional Economic Outlook by the IMF emphasizes the fact that the country is building external buffers and bonds to steady itself in the face of the immediate execution of policies. The above-mentioned are almost every debt for servicing, including those of the Eurobond.
Inflationary pressures in countries like Pakistan could be reduced, narrow monetary policies should be maintained, and there should be a data-based approach, as the IMF recommended. The IMF is also of the view that the debt-burdened country should be vigilantly watching out for inflation risks. The economic growth of Pakistan is expected to decline or show negative growth in 2023. This positive growth rate is expected to move up to 2% in agricultural and textile areas and in economic activity as a whole.
The Finance Minister, Arunjeeb, addressing in Washington, made a point: Pakistan could see its economy growing up to 3 trillion dollars by 2047 with sustained implementation of fundamental reforms. The 3 billion USD arrangement that is Pakistan’s current IMF subscription is due to expire in April accordingly. To this effect, the administration has found a need for a bin omasic and longer loan to calm senji key monetary stability as well as provide structural changes.
