Pakistan has formally approached International Monetary Fund for a loan and it is learnt that the Fund has reached an initial understanding with the government of Pakistan and has approved a $7.6bn economic package for the country. Pakistan urgently needs this money to meet the growing balance of payment crisis.
The loan is a stand-by arrangement for a period of 23 months and it is subject to approval by the executive board of IMF. IMF has put forward some pre-conditions for the approval of loan which the government of Pakistan has approved. The increase in discount rate by the State Bank of Pakistan is a step in this direction. According to the agreement, IMF will have rights to economic affairs of the country for which it will designate its own experts.
The other day adviser to the prime minister on finance said that the loan is being taken without any condition. He said that Pakistan was taking loan on its own conditions. I think that this is not true. I also believe that the loan would not benefit the common people of the country and it will be pocketed by the corrupt politicians.
In Ukraine, it was the parliament which approved the loan whereas in Pakistan it is a few individuals who are taking decisions. Such important issues must be discussed in the parliament. What is the relevance of parliament if such important decisions are to be taken by a few individuals?
Pakistan has formally approached International Monetary Fund for a loan and it is learnt that the Fund has reached an initial understanding with the government of Pakistan and has approved a $7.6bn economic package for the country. Pakistan urgently needs this money to meet the growing balance of payment crisis.
The loan is a stand-by arrangement for a period of 23 months and it is subject to approval by the executive board of IMF. IMF has put forward some pre-conditions for the approval of loan which the government of Pakistan has approved. The increase in discount rate by the State Bank of Pakistan is a step in this direction. According to the agreement, IMF will have rights to economic affairs of the country for which it will designate its own experts.
The other day adviser to the prime minister on finance said that the loan is being taken without any condition. He said that Pakistan was taking loan on its own conditions. I think that this is not true. I also believe that the loan would not benefit the common people of the country and it will be pocketed by the corrupt politicians.
In Ukraine, it was the parliament which approved the loan whereas in Pakistan it is a few individuals who are taking decisions. Such important issues must be discussed in the parliament. What is the relevance of parliament if such important decisions are to be taken by a few individuals?
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