“Pakistan the only Nuclear Country Begging for International Aids:” Pak Media
NEW DELHI, Feb 25: Pakistan’s Imran Khan government is facing strong criticism from the general public for its continued dependence on foreign loans to run the country’s day-to-day economy. “Pakistan is probably the only nuclear country in the world whose daily affairs require loans, begging for aid and this has continued for decades,” an editorial comment in a top daily said on Friday.
The backlash came amidst the release of a fresh tranche of loans from the International Monetary Fund (IMF). Public confidence in the government is at a new low due to financial mismanagement and over-dependence on foreign funds to run the country, ‘Islam Khabar’ claimed.
Angry reactions followed a tweet by Pakistan’s Finance Minister Shaukat Tarin announcing the approval of the 6th tranche of IMF loans. “I am pleased to announce that IMF Board has approved 6th tranche of their programme for Pakistan,” Tarin tweeted. “It is not only surprising but also regrettable that the Finance Minister, by enslaving the nation, expressed happiness over the receipt of a new installment from the IMF,” the report noted.
The IMF on Thursday released the sixth tranche of one billion dollar loan to Pakistan, subject to fulfilling certain conditions. Fuel prices and power tariffs in Pakistan are at historic highs as a result. The fresh funds constitute an installment of a USD 6 billion bailout package. IMF’s Executive Board had cleared the bailout package for Pakistan on July 3, 2019, after difficult negotiations.
“Pakistan remains vulnerable to possible flare-ups of the pandemic, tighter international financial conditions, a rise in geopolitical tensions, as well as delayed implementation of structural reforms,” the IMF noted in a report prepared for the executive board.
The 39-month loan program — meant to help cover for major shortfalls in government coffers — is subject to regular reviews by the IMF of Pakistan’s economic policy and growth. The latest tranche of the so-called Extended Fund Facility (EFF) was released after the decision by the IMF executive board at a meeting in Washington.
The last tranche of $500 million was released in March 2021.
However, a subsequent tranche meant to be paid later in the year was held back because of the Imran Khan government’s failure to implement an economic reform agenda. With this disbursement, Pakistan has been loaned $3 billion from the total $6 billion package so far.
The development is a shot in the arm for Pakistan’s crumbling economy which is struggling due to rising global energy and commodities prices. Attempts to increase tax revenues have probably only helped fuel inflation as a side-effect. “The Pakistani economy has continued to recover despite the challenges from the COVID-19 pandemic, but imbalances have widened, and risks remain elevated,” the IMF said in a statement.
The executive board called for increased focus “on measures to strengthen economic productivity, investment, and private sector development, as well as to address the challenges posed by climate change.”
(Manas Dasgupta)
