IMF stopped Pakistan's debt: did not accept the condition of increasing fuel price

IMF stopped Pakistan's debt: did not accept the condition of increasing fuel prices, needed help to get out of the economic crisis

Jan 16, 2023 - 08:33
IMF stopped Pakistan's debt: did not accept the condition of increasing fuel price

The people of Pakistan, who are suffering from the economic crisis, are facing inflation along with a shortage of food items. He is not getting the necessary help from anywhere. Foreign exchange reserves have been reduced to $ 4.3 billion, due to which only three weeks of imports can be done.
Due to the foreign exchange crisis, essential ingredients like flour are not being imported. Food items and medicines are stuck at the ports.
The Pak government had asked the International Monetary Fund (IMF) for $ 6 billion in help, but it has set conditions for increasing the prices of petrol and diesel. The previous Imran government in Pakistan had announced a subsidy in energy prices amidst the increase in energy prices worldwide due to the Russia-Ukraine war. Now in view of the elections this year, the Shahbaz Sharif government is hesitating to take any unpopular step like increasing the prices.
The shipment of soybean has stopped for two and a half months. Imported material got stuck at the ports due to the bank's hindrance in giving credit. Onion containers stopped at the ports, the prices increased wildly. The shipment of soybean has been stopped for two and a half months due to which the prices have increased by 45%. The Ministry of Health Services has warned of a shortage of life-saving drugs due to the non-import of raw materials.
The debt received by Pakistan from IMF, World Bank, China and other countries has reached 84 percent of its total GDP. Pakistani rupee against the dollar The price has come down. Currently, it costs Pakistan Rs 224 to buy 1 US dollar. have to spend. Corruption and political instability have made the situation worse. According to a report by The Express Tribune, the total debt and liabilities of Pakistan till August 2022 will be Rs 59.7 lakh crore. Was. 11.9 lakh crore as compared to the previous financial year. That is 25% more.
Toyota and Suzuki have closed car plants. Many plants in the major textile industry are also closed. Due to the delay in approval, the Toyota manufacturer has stopped production from December 30. Due to a lack of demand, the production of cars, tractors and fibre has stopped or has been cut. Credit is not being approved for edible oil importers.
By the end of this year, the debt in Pakistan will increase to 140 billion dollars. By 2025, it will have to pay 73 billion dollars. Means about 24 billion dollars per year for the next three years. 8.3 billion dollars to be paid in the next three months. 32 billion dollars loan has to be arranged in the ongoing financial year.

Muskan Kumawat Journalist & Writer