Pakistan's Current Economic situation

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Pakistan's Current Economic situation

Like rat traps in rat cage that’s how Pakistan is trapped by the IMF(international monetary fund)cage said by the Pakistan’s prime minister Imran khan.

Chiarman of national business group ,Pakistan businessmen and intellectuals alliance, and former provincial minister mian zahid hussain said that country has not enough money to run properly.

Due to below points Pakistan is facing problem

1. Due to policies of IMF Pakistan industries will face a heavy economic damage.

Few days ago Pakistan took loan from Saudi crown prince mohammad bin salman 4.2 billion dollars in cash assistance.

Also they took loan from china on the name of power sector projects that are the parts of the 62 billion dollars china-pakistan-economic-corridor. But this money directly goes to Pakistan’s central bank which Pakistan government can't use because of rules sets by the IMF.

Some time ago, Pakistan accepted the IMF package, in return, IMF sets some rule for Pakistan although Pakistan is free country but they became economic colony of IMF.

In simple words pakistan’s economy is governed by the IMF totally.

Rules sets by the IMF for Pakistan

• Without our(IMF) concern Pakistan’s government can not take money from central bank to run their scheme or country.
• Pakistan government also can not issue bonds that their central bank can purchase. Indirectly, they are taking money from central bank
• Majority of money to run country you will take from your population on the name of taxes but in Pakistan majorty population didn’t give direct tax. So, the sword falls on industries neck. Industries have to give additional taxes.
• Only tax collected money can be used on country’s schemes or on country’s development.

2. Pakistan petrol retailers start nation wide strike as profit margin drops.

Because Pakistan increases its additional taxes, so the petrol retailer’s profit margin goes very down. Which is not good. As a result, prices of product goes like sky rocket and it will also damage the Pakistan economy in long term.

3. In a first, Pakistan’s debt, liabilities cross PKR 50 trillion(270 billion dollars debt)

In which 127 billion dollars is just external debt on Pakistan.

That’s why IMF tuned down the Pakistan government’s proposal to allow it to take loans equal to 2 percent of the gross domestic product in fiscal year. It means they rejected 6 billion dollars additional loan.