Pakistan: Pakistan has also decided to borrow 5.5 trillion Pakistani rupees from international lenders in the current fiscal year to maintain its foreign exchange reserves, repay the previous loans and finance the current account deficit. Rana Sanaullah, Pakistan's interior minister, claimed on Monday that despite making the nation dance to its tune, the International Monetary Fund (IMF) did not release the tranche for the $6 billion bailout package.
The minister claimed that Pakistan is experiencing its most challenging economic situation and that the government must make challenging choices. According to Sanaullah, the government even agreed to the IMF terms that it did not like, according to the website. The minister pleaded with the IMF to swiftly release the tranche so that Pakistan could escape its challenging circumstances.
In order to maintain its foreign exchange reserves, pay back prior loans, and finance the current account deficit, Pakistan has also decided to borrow 5.5 trillion Pakistani rupees from foreign lenders in the current fiscal year. The Shehbaz Sharif administration predicted in its annual budget that it would only borrow $3.17 trillion from foreign sources. But funding from the IMF, Saudi Arabia, and the SAFE China deposit were not included in the budget.
Pakistan's business leaders have expressed concern that social unrest is on the horizon and that the country is becoming unsafe for foreign investment as a result of a series of government policies that aim to deter investors. Economic policies are not consistent. In order for policies to remain in place, there must be separate teams for economic and political issues, according to Saqib Fayaz Magoon, a former vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
The overreliance on the Belt and Road Initiative projects that China dangled as the proverbial carrot to Pakistan and Sri Lanka, sending both countries into an unbreakable debt trap, is a unique, but not surprising, factor that unites their economic predicaments. When China made the contentious China-Pakistan Economic Corridor (CPEC) development offer in 2015, Pakistan was overjoyed. In China's strategic plan to engulf large portions of Indian territory in Pakistan-occupied Kashmir and construct an all-weather road leading to the Gwadar port for access to the Indian Ocean, Pakistan voluntarily became a pawn. Beijing is reviewing the CPEC and is hesitant to make any additional investments until Pakistan's economic situation improves. China will wants to exert pressure on Islamabad to support it fully and without reservation. Apart from this, the terror funding of Pakistan against India is also becoming an unfathomable sea for the common people of Pakistan.
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