Islamabad: – The International Monetary Fund (IMF) has slapped Pakistan, requesting for a fresh loan of $15 billion, on the face. The IMF has given frank advice that as a country has obtained loan upto 90% in its economy, Pakistan should stop paying its employees to avert an economic crisis, . The IMF also demanded Pakistan should set an objective of reduction in expenses, of $180 billion in the budget, to be presented in June. It is clear that if Pakistan accepted this demand the Pakistan economy will sink further.
Following the onset of the Coronavirus pandemic, Pakistan has been pleading with the international financial institutions and leading countries of the world, for loans, to protect its people from the pandemic. It was exposed that the funds which came in after this, were used by Pakistan for loan repayments and payment of electricity bills, instead of using for the benefit of the people of Pakistan. The IMF has taken serious cognisance of the fact that the Pakistan government is using the funds on non-productive things rather than cutting down expenses.
At this time, when the economy has hit rock bottom, the Pakistan military has demanded a pay-hike of 20%. It was also exposed that the Pakistan government used massive funds for its own propaganda. The IMF has reprimanded Pakistan that due to all these economic characteristics, the debt burden has reached 90% of the Pakistan Economy and cutting down expenses, in the only way to go.
IMF has lambasted that The Pakistan government should decide to cut down expenses by $180 billion in the budget, to be presented in June. Moreover, the IMF has also given strict instruction to Pakistan to reduce defence expenditure. The warning issued by the IMF that the Pakistan government will have to make a big increase in the rates for electricity and gas is sending chills down the spine of the government. The Pakistan government has requested the IMF that this provision cannot be made in the budget, but it will decide in December.
It is apparent that if the Pakistan government implements the suggestions of the IMF, the inflation will flareup in Pakistan and therefore, leading to the eruption of discontent brewing against the already unpopular Imran Khan Government. But if the suggestions of the IMF are not implemented there is no possibility of Pakistan getting a loan. Moreover, the Coronavirus pandemic is playing havoc in Pakistan. Therefore, the discussions that the Imran Khan government will not last long have already started. Imran Khan, when he was the opposition party leader, had bragged that he would prefer death to beg for a loan from the IMF. The opponents and supporters of Imran Khan, are asking ‘what happened to that pride’?