Pakistan: IMF loan program may end; Amidst the financial crisis, the Finance Minister said – there is no financial crisis
Pakistan’s Finance Minister Ishaq Dar told that on June 30, the loan program of the IMF will end. He told that the time to re-implement the program is about to end. Pakistan says that they need a US$6.5 billion loan from the International Monetary Fund to stabilize their economy.
Pakistan could complete only one program
Finance Minister Dar told the delegation of the regional trade body that we want the second program of the IMF to be completed in the history of Pakistan. However, time is limited, with the IMF’s loan program ending on June 30. Dar pointed out that Islamabad had signed a 36-month US $6 billion line of credit facility in July 2019. But at the request of then Finance Minister Miftah, the IMF extended the program for nine months and extended the deadline to June 30, 2023. Also, the IMF had increased the amount to $6.5 billion. Pakistan had signed up to 22 IMF programs since 1958, but could not complete a single program except for the 2013-2016 facility.
Tension in pakistani market
According to a report, it will reduce the confidence in the world towards countries that do not complete this program of the IMF. Dar says that there is no financial crisis in Pakistan. Pakistan will not default. However, there is still panic in the market. Since, Pakistani rupee has now increased from 308 to 313 rupees per dollar. The Pakistani market is under stress due to falling power of Pakistan’s rupee. According to the report, due to political tussle in Pakistan, the coalition government had failed to complete the review. Apart from this, Pakistan also delayed the completion of 10th-11th reviews. Dar boasted that we surprised the pundits who predicted Pakistan’s bankruptcy.
Assured to help by three countries
Dar said that he apologizes to the traders for the inconvenience caused to them due to the present economic situation. However, he said that the present Finance Ministry is not at all responsible for the economic problems. However, UAE, Saudi Arabia as well as China have given assurances to help Pakistan. With the help of all the three countries, Pakistan will try to emerge from its economic problems. Pakistan’s finance ministry has advised the Sharif government to negotiate a new deal with the IMF.
