IMF Denies Financial Help to Pakistan: Pakistan, which is facing economic crisis, has now suffered a setback from the International Monetary Fund (IMF). IMF has refused to give economic relief to Pakistan. Pakistan’s request to send a review team was turned down by the IMF.
According to a report, due to the economic crisis, the Pakistani government is also planning to cut the salary of the employees by 10 percent and along with this it is also considering other measures to overcome the crisis. These measures include cutting the expenditure on ministries by 15 per cent. It is also being said that the number of Ministers and Ministers of State can also be reduced.
What is the job of the IMF review team?
The job of the IMF’s review team is to take stock of the real economic situation and review it to solve the problem. In view of its economic crisis, the Government of Pakistan had requested the IMF to send a review team to visit the country. Now reports are coming that IMF has refused to send its review team to Pakistan. As a result, it is believed that Pakistan has not got relief even from IMF.
How much foreign exchange reserves are left?
According to reports, the foreign exchange reserves of the State Bank of Pakistan (SBP) have recently touched the lowest level of $4.343 billion, which is only enough for two weeks. At the same time, according to Reuters news, Pakistan is grappling with a balance of payments crisis and its foreign exchange reserves have dropped to $4.6 billion, which is barely enough to cover three weeks of imports. Pakistan received a $6 billion bailout in 2019 which topped $1 billion earlier this year.
It is believed that during the economic crisis of a decade, the economic condition of Pakistan is most critical at present. Inflation is at its peak in the country. Gas prices have seen an increase of 70 percent and electricity bills by 30 percent. To overcome the situation, Pakistan has approached several countries including the IMF.