Pakistan Economy Crisis: Now Pakistan is trapped in the clutches of IMF, if conditions are accepted then coup is fixed in the country

Pakistan is in the grip of a serious economic crisis. Rupee is falling continuously. Inflation is rising in the country and the supply of energy has come to a standstill. Prime Minister of Pakistan Shehbaz Sharif is worried about the public’s anger ahead of the upcoming elections. Tax hike and subsidy removal on IMF demand may oppose. The sudden increase in the price of petrol and diesel is also the result of IMF conditions. The coming months may be more difficult for the people of Pakistan. International Monetary Fund has asked the Pakistani authorities to take strong action to limit the revenue deficit within a limit. Officials from Pakistan and the IMF have discussed ways to propose taxation uses through the mini-budget and discussed the possibility of its smooth functioning. There are indications that the Government of Pakistan may increase the tax burden on the public in the coming days.

Asked to impose 17 percent GST

IMF does not give loan to any country so easily. Very strict rules are imposed by them. Geo News reported that the International Monetary Fund (IMF) and the government of Pakistan are at loggerheads over a financial gap of Rs 900 billion, which is a major hurdle in concluding a staff-level agreement. The IMF calculates a huge gap of about 900 billion rupees, equivalent to 1 per cent of gross domestic product (GDP). Geo News reported that the IMF is asking for raising the GST rate from 17 to 18 per cent or levying 17 per cent GST on petroleum, oil and lubricants (POL) products.

Suggestion to include CDMP

Pakistan is grappling with a fiscal gap in meeting the primary deficit. Pakistani authorities have asked the IMF to include shortfall inflows under the Revised Circular Debt Management Plan (CDMP) and reduced the amount of additional subsidy required by Rs 605 billion against the earlier target of Rs 687 billion. Therefore, the fiscal gap remained in the range of Rs 400 to Rs 450 billion.

Change will happen through Pakistan’s mini budget

In addition, an increase in custom duty on sugary beverages from 13% to 17% is being considered. All this can be done through the small budget of Pakistan. Top officials have completely ruled out any possibility of an IMF position on Pakistan Tehreek-e-Insaf (PTI) chairman Imran Khan signing on to revive the fund program and have said that the IMF review There has been no such discussion with the mission.

Why does the IMF give loans?

Loans are provided free of cost by the IMF to countries with very poor category. Whose purpose is to get that country out of the economic crisis. When there is a crisis on any country, it affects not only that country but also other countries.