Double whammy in Pakistan, foreign exchange reserves fall on loan installment payment
Pakistan Economic Crisis: Poor Pakistan has become dependent on food and drink. There is no money left to run the country. It has become a compulsion to borrow even to repay the loan. Pakistan is unable to think of any way to overcome this new problem. In the midst of all this, recently Pakistan has paid a fee to pay off the old debt. After this, the foreign exchange reserves of this country have remained below 3,000 million dollars. Which is a danger bell for Pakistan.
Pakistan’s foreign exchange reserves dwindle to $2.9bn
The Pakistani government recently repaid an installment of the old loan, after which its foreign exchange reserves increased to $2.9 billion.
According to the Pakistani newspaper ‘Dawn’, the State Bank of Pakistan (SBP) has released the data and reported on the drop in currencies. Already begging the IMF for a bailout package, Pakistan’s dwindling foreign exchange reserves are a matter of concern to them.
Pakistan had a hope of getting help from the International Monetary Fund. But that’s also in cold storage. Pakistan has been continuously demanding a bailout package from the IMF. But the IMF has laid out some conditions that are so stringent that Pakistan is currently not in a position to accept it.
The IMF put these two big conditions in front of Pakistan for the loan
The two biggest conditions that the IMF has put in front of Pakistan. One of them is to increase electricity bills by reducing the subsidy. On the other hand, the second condition is that the Pakistani government will have to share the ownership information of all its officials above grade 17 with the IMF. It is not easy for Pakistan to accept these two demands of the international body.
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