Pakistan may secure IMF assistance if they adhere to conditions

The economy of Pakistan is in a state of crisis and shows no signs of improvement in the upcoming fiscal year.

The economy of Pakistan is in a state of crisis and shows no signs of improvement in the upcoming fiscal year. In light of these facts, the government of Pakistan has agreed to the conditions of the International Monetary Fund. One of the major reasons for the agreement is the dwindling condition of the various sectors of Pakistan’s economy. If Pakistan is successful in adhering to these conditions, they will get the fundings

The government has agreed to the IMF’s condition against paying an instalment of USD 1.2 Billion. However, some sources have reported that IMF has refused to make concessions in the payments. This discussion took place during a video conference between IMF and Pakistan. Meanwhile, Islam Khabar, a local newspaper in Pakistan, reports that the country has a history of not honouring its commitments to the IMF.


Presently, the conditions of the IMF for releasing the loan amount to the country include the following:

  • Elimination of Electricity Subsidy
  • Adjustment of gas tariffs to align with international prices, 
  • Implementation of a market-determined exchange rate, 
  • lifting restrictions on opening letters of credit

If the discussions between the Pak Government and IMF conclude, they will get the economic assistance they need. Meanwhile, if this goes south, Pakistan’s situation will worsen. 

Reportedly, if they are unable to meet any of the IMF conditions. In that case, it could lead to the cancellation of possible fund inflows from allies like Saudi Arabia, UAE, China, and other institutional lenders.

Meanwhile, the Imports of Pakistan are stuck due to extremely low forex reserves. Islam Khabar elaborated on the situation, saying that over 9,000 containers of imported goods are stuck in the various ports of Pakistan. The disruption in the supply of essential goods led to a steep rise in inflation. 

Additionally, the textile industry of Pakistan is on the brink of closing. This is because they lost credibility and market share among international buyers. Various sources believe that the crisis in the country has intensified systematically due to political mismanagement, losses due to floods and various other reasons.

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