Deep in debt, Pakistan is surviving on bailouts from the International Monetary Fund (IMF) and other countries.
Now Pakistan’s PM Shahbaz Sharif has also accepted that his survival is not possible without the loan given by IMF.
According to Reuters report, Pakistan’s PM says that his country’s economy cannot survive without IMF help.
It is noteworthy that Pakistan is expecting to receive an aid amount of 1.1 billion dollars from the financial agency next month, hence this statement of the Prime Minister of Pakistan can be seen in the direction of pleasing the IMF.
The Pakistani PM said that Pakistan needs to bring deep structural reforms with a two-three year IMF programme.
Pakistan came on knees to please IMF
The Pakistan Prime Minister’s statement comes a day after the global lender said it has reached a provisional agreement with Pakistan to unlock the $1.1 billion tranche of the bail-out deal.
Let us tell you that this amount to be released by IMF will be the last installment of the $3 billion package received by Pakistan last summer.
It is important to note that Pakistan, which was on the verge of default, had last summer outlined a $3 billion settlement with the UN financial agency.
Now Pakistan is demanding another long-term bailout. IMF officials further said the latest part of the deal is subject to board approval in late April. This deal expires on April 11.
Pakistan again wants loan from IMF
“Pakistan’s economic and financial situation has improved in the months since the first review, with growth and confidence continuing to improve due to prudent policy management and the resumption of flows from multilateral and bilateral partners,” the IMF said.
However, growth this year is expected to be modest and inflation remains well above target. “Pakistan needs more policy reforms to address its economic weaknesses.”
The IMF said Pakistan has expressed interest in another bailout. Discussions on IMF’s medium-term assistance with Pakistan are likely to begin in the next few months.
Earlier on Wednesday, PM Sharif informed his cabinet that the country needs a new IMF loan and increasing the tax base is essential to securing the deal. Finance Minister Muhammad Aurangzeb said in the cabinet briefing, “The IMF agreement will improve the country’s economy.”