(Pakistan IMF Loan): Pakistan has once again found itself in a massive economic crisis, with the country drowning in debt, seeking more loans from the IMF. However, this time the International Monetary Fund has set such tough conditions for lending that Pakistan has no option but to sell important national assets.
The IMF has once again opened the doors of assistance for impoverished Pakistan. With a collapsing economy, nearly depleted foreign reserves, and inflation rates out of control, the IMF board approved a new loan review on Monday. Following this approval, Pakistan will receive approximately 1.2 billion dollars in funds. This amount will help Pakistan increase its reserves and exert some control over inflation. It is expected that this fund will provide some relief to resource-strapped Pakistan.
Strict Conditions Imposed in Exchange for Loan
The IMF has set some stringent conditions while assisting Pakistan. The main ones include
Significantly increasing tax collection
Accelerating the privatization of government institutions
Reducing unnecessary expenses
Implementing economic reforms swiftly
The IMF clearly believes that it is necessary for Pakistan to make rational changes in its economic policies. They believe that only if the private sector is boosted will the economy be strengthened.
In what form is the IMF fund?
The IMF board approved giving Pakistan 1 billion dollars under the 'Extended Fund Facility' of 7 billion dollars and 200 million dollars under the 'Resilience and Sustainability Facility'. Pakistan has received approximately 3.3 billion dollars from these two schemes so far.
The IMF says:
“Pakistan is moving towards economic stability. Inflation has slightly decreased, foreign reserves are increasing, and investor confidence is returning.”
National Institution Auction—PIA Sale Time
According to IMF conditions, Pakistan needs to accelerate privatization. As part of this, the largest privatization campaign in 20 years has begun.
Under this, Pakistan has decided to sell its national airline PIA (Pakistan International Airlines). Prime Minister Shahbaz Sharif announced that the bidding process for the stake in PIA will take place on December 23. Four major industrial groups have been allowed to bid.
The following companies are interested in buying PIA—
Fauji Fertilizer Company
Lucky Cement Group
Arif Habib Corp
Air Blue Limited