Pakistan on the verge of bankruptcy, forced to sell government assets to other countries
Cash-strapped Pakistan’s federal cabinet has approved an ordinance that seeks to sell government assets to other countries. This information was given in the media reports on Saturday. According to the news, the government has taken this decision to avoid the danger of bankruptcy of the country.
According to The Express Tribune newspaper, the Intergovernmental Commercial Transfer Ordinance-2022 was approved by the federal cabinet on Thursday. According to the report, a provision has been made in the ordinance that the court will not hear the petition filed by the government against the sale of property or stake to other countries.
Preparation to sell to government power company also
The decision has been taken to sell stake in oil and gas companies and the state-owned power company to the United Arab Emirates for $2-2.5 billion, to avoid the risk of bankruptcy. The newspaper said that President Arif Alvi has not yet signed the ordinance.
UAE refuses to deposit cash in PAK banks
The report said that the land of two LNG-powered power plants along with their machinery has also been allowed to be sold to foreign countries. According to the news, the United Arab Emirates refused to deposit cash in Pakistan’s banks in May as it has not been able to repay the earlier loan.
The challenge of arranging $4 billion
At the same time, the International Monetary Fund (IMF) has put a condition that Pakistan’s case cannot be taken before the board unless it arranges USD 4 billion with friendly countries to bridge the financial gap. Meanwhile, Pakistan’s rupee fell by 8.3 per cent from its value this week, the highest since November 1998. This situation reflects the gravity of the challenges facing the government.
