Pakistan is fully Bankrupt now. PM Imran Khan begs in front of IMF

Pakistan has announced on Monday that Pakistan will go to the International Monetary Fund (IMF) for the ‘bailout package’ to tackle the rising balance of payments within the country. After the initial hesitation and delay, Pakistan announced its decision. The Prime Minister of Pakistan, Imran Khan, has decided to contact the IMF. However, Khan had opposed such steps in the past to help the country’s economy.

Finance Minister Asad Umar said that after the approval of this decision by the Prime Minister Imran Khan, the talks will be initiated with the IMF. In this year on May 31, it was said that the foreign exchange reserves of Pakistan are continuously reducing. According to one figure, Pakistan now has only foreign exchange reserves of $ 10.3 billion i.e 69,504 crore rupees. In May last year(2017), it was $ 16.4 billion or Rs 1,10,667 crore.

According to the Financial Times, the amount of foreign currency that Pakistan has, is equivalent to imports of not more than 10 weeks. According to the report of the Financial Times, the amount of money that was sent to Pakistan from abroad countries by Pakistani people working in abroad has also declined. With this, Pakistan’s import has increased. Foreign exchange reserves are also being vacant due to heavy payments to companies engaged in the China-Pak Economic Corridor.

The World Bank had warned Pakistan in October 2017 that it will need 17 billion dollars this year to bridge the debt payment and loss account deficit. However, Pakistan had argued that if the rich Pakistanis settled abroad, if they are given the lure of good benefits then they can help their country. An official from the central bank of Pakistan had said that if  we will give the migrant Pakistani offers, then money will definitely come in the country.

After Donald Trump becoming President of the United States, the United States has made huge cuts in financial support from Pakistan. According to Reuters, the US relationship with Pakistan has completely derailed. Pakistan needs a billion dollars from the Pakistani people living in abroad. China’s debt on Pakistan is increasing steadily. For the fiscal year ending in June, a $ 5 billion loan has been taken by Pakistan from China.

According to the IMF, the burden of debt on Pakistan is continuously rising. According to a report, between 2009 and 2018, foreign debt has increased 50 percent on Pakistan. The IMF gave Pakistan an package of $ 6.7 billion in 2013.

IMF praised India for its Economy:

The International Monetary Fund (IMF) has projected India’s growth rate of 7.3 percent for the year 2018, while the estimate for fiscal year 2019 is 7.4 percent. In the financial year 2017, India’s growth rate was 6.7 percent. IMF has said in the latest World Economic Outlook report that India’s growth rate is expected to be 7.3 percent in 2018 and it will be 7.4 percent in 2019. 

World Bank also Praised India:

The World Bank has  also said that India’s economic growth is strengthening and it is estimated to be 7.3 percent in the current financial year. After this, it will go up further to 7.5 percent in the next two years. The World Bank has made this estimate in its latest report.

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