I think Pakistan has no other option but to approach IMF for immediate assistance. Pakistan has to make payments of up to $3bn dollar in December. Presently it does not have enough resources to make this payment on time. The economy of the country which was already in bad shape because of suicide bombings and law and order situation in the country, has come to a standstill amid fears that the country may default on its payments in December.
The Pakistan government has been trying its best to get financial help from “friendly countries”, but so far it has not been successful. A consortium by the name of “Friends of Pakistan” formed in United States, to assist Pakistan has also not come up with any commitment. The advisor to Prime Minister on Finance, Shoukat Tareen has said that the country will be forced to go to IMF if it does not receive aid soon.
Pakistan may get loan from IMF but it will have to meet tough IMF conditions which I think will not be acceptable to the leaders and people alike. IMF is demanding a cut in defense spending, which will be rejected by military establishment. IMF is also demanding taxation on agricultural income, which will not be acceptable to powerful feudal lords. God help Pakistan.
I think Pakistan has no other option but to approach IMF for immediate assistance. Pakistan has to make payments of up to $3bn dollar in December. Presently it does not have enough resources to make this payment on time. The economy of the country which was already in bad shape because of suicide bombings and law and order situation in the country, has come to a standstill amid fears that the country may default on its payments in December.
The Pakistan government has been trying its best to get financial help from “friendly countries”, but so far it has not been successful. A consortium by the name of “Friends of Pakistan” formed in United States, to assist Pakistan has also not come up with any commitment. The advisor to Prime Minister on Finance, Shoukat Tareen has said that the country will be forced to go to IMF if it does not receive aid soon.
Pakistan may get loan from IMF but it will have to meet tough IMF conditions which I think will not be acceptable to the leaders and people alike. IMF is demanding a cut in defense spending, which will be rejected by military establishment. IMF is also demanding taxation on agricultural income, which will not be acceptable to powerful feudal lords. God help Pakistan.
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