The IMF is Pakistan’s new Government
Channel: GeoStar TV
Date: 2020-03-06

The IMF is Pakistan’s new Government,The International Monetary Fund (IMF) is Pakistan’s new government. When it comes to major economic decisions, that is. IMF sets the policies that will either make or break the country’s economy.

Early this month, the Washington-based institution gave Pakistan a $6 billion loan that helped the newly-elected government of Imran Khan cope with large government and current account deficits, and soaring debt.

In a statement, the IMF said Pakistan faces a "challenging economic environment, with lackluster growth, elevated inflation, high indebtedness, and a weak external position".

It said the funding programme would support the authorities' strategy for stronger growth by "improving the business environment, strengthening institutions, increasing transparency, and protecting social spending".

IMF bailout funding is typically provided under strict conditions, and some analysts have warned that any fresh IMF injection could harm Prime Minister Imran Khan's pledges to build a welfare state.

Since he was sworn in last August, Mr Khan has been aggressively pursuing help from friendly countries in order to reduce the size of the bailout package that Pakistan may need from the IMF.

The country has faced a potential balance of payments crisis - where a nation struggles to meet external debts or pay for critical imports - due to a stagnating economy.


Pakistan, a nation full of potentials both in culture and economy, has been facing serious challenges in the past 30 years and its economy is not even close to reach its full potential. 

As a result, Pakistan’s economic future is at a crossroads. Past large deficits, the high cost to buy a rupee, and the lack of reforms have undermined growth.

In an attempt to restore strong and sustainable growth, Pakistani government has received a loan from the International Monetary Fund (IFM). The IMF wants Pakistan to increase the proportion of its people who pay taxes and for the government to reduce public debt.

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