Enough After many efforts, Pakistan finally got a loan from the IMF. The IMF board has approved a new loan of $7 billion for Pakistan. But the troubles of the neighboring country are not over yet. According to Pakistani economists, the deal will only help in paying off the immediate debts, nothing more. Pakistan has said that after getting the loan approved, it will now have to go through transitional pain. However, Pakistan's economy, which came to the brink of bankruptcy last summer, has now become stable. Pakistan's economy is dependent on IMF bailout packages and loans from its friendly countries. The situation is such that half of Pakistan's annual revenue is lost just in paying the interest on this loan.
Deal made with the support of Saudi Arabia, China and UAE
Pakistan Finance Minister Muhammad Aurangzeb told local media, 'This loan will cause transitional pain. But if we have to make this the last programme, we will have to do structural reforms. The IMF said in a statement that it would release approximately $1 billion immediately. Prime Minister Shehbaz Sharif said the deal was achieved due to the “tremendous support” of Saudi Arabia, China and the United Arab Emirates.
Pakistan will have to pay huge interest
Pakistani Finance Minister is talking about transitional pain in this loan because now the country will have to follow the conditions of IMF. Apart from this, huge interest will also have to be paid. Sharif said, 'In the last phase of the deal negotiations, the IMF's conditions were related to China, I am really grateful for the way the Chinese government supported us and strengthened us during this period.
This loan will only help in repaying the loan
“This deal will help us pay off our immediate debts, but nothing more. The only economic reform we need to implement is more taxes and government spending,” Pakistani economist Qaiser Bengali told news agency AFP. There has been no progress in reducing it either.”
China has the highest debt on Pakistan
Image Credit: India-Tv.