Yet another IMF program Pakistan could not complete
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nine month program
IMF has now started a new and short-term program of three billion dollars for Pakistan. And the $6.5 billion program ended unsuccessfully. Pakistan will get three billion dollars for a period of nine months. The country has been saved from default for the time being, but how long this situation will last is a big question. The rapidly depleting reserves may get some support from the staff level agreement. In the year 2019, the 23rd loan program worth $6.5 billion was approved. In 75 years of independence, Pakistan has reached out to the IMF 23 times for help.
IMF gave exemption 18 times
For the first time in 1958, Pakistan sought help from the IMF, that is, exactly 11 years after independence. 18 times he has been exempted from the IMF. Since 1990, the country has sought help from international organizations 11 times. IMF official Nathan Porter announced this new agreement. He said the new agreement builds on the 2019 Extended Fund Facility-backed programme. Porter also said in his statement that Pakistan’s economy has faced many challenges in recent times. These challenges include last year’s devastating floods and rising prices of essential food items following the war in Ukraine.
Deepening economic crisis
The economic crisis in Pakistan is getting deeper. The inflation rate in the country has been recorded at around 38 per cent in May. The country has been struggling to stabilize its economy for the past several years. According to a BBC report, this year the country’s foreign exchange reserves have fallen to such a level that it can cover less than three weeks of imports. The country’s political instability has also spooked the market. The Pakistani rupee has depreciated by about 40 per cent against the dollar over the past year.
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