IMF Slaps 11 New Conditions on Pakistan for Release of Next Financial Assistance: Report
The International Monetary Fund (IMF) has reportedly imposed 11 new conditions on Pakistan for the release of the next tranche of its bailout programme. According to a recent report, the new conditions include parliamentary approval of a new PKR 17.6 trillion budget and lifting restrictions on the import of more than three-year-old used cars.
This development comes as a significant setback for Pakistan, which had been hoping to receive the next installment of financial assistance from the IMF. The country has been struggling to stabilize its economy, and the IMF’s latest conditions are likely to add to its woes.
The IMF had recently approved two bailout packages worth a total of $2.4 billion for Pakistan, which was seen as a major boost for the country’s economy. However, the latest conditions imposed by the IMF are likely to be a major challenge for the Pakistani government.
According to the report, the new conditions include:
- Parliamentary approval of a new PKR 17.6 trillion budget, which is a significant increase from the current budget.
- Lifting restrictions on the import of more than three-year-old used cars.
- Increasing the price of petroleum products to bring them in line with international prices.
- Reducing the fiscal deficit to 6.3% of GDP, which is a significant reduction from the current level.
- Increasing taxes on luxury goods and services.
- Implementing a new system of taxation on the real estate sector.
- Increasing the price of sugar and other essential commodities.
- Reducing the current account deficit to 2.5% of GDP.
- Implementing a new system of taxation on the banking sector.
- Increasing the price of electricity and other essential services.
- Implementing a new system of taxation on the telecom sector.
The Pakistani government has been struggling to implement these conditions, and the latest development is likely to add to its challenges. The government has been facing opposition from various quarters, including the opposition parties and the public, who are opposed to the IMF’s conditions.
The IMF’s conditions are likely to have a significant impact on Pakistan’s economy, and the country is likely to face significant challenges in implementing them. The government has been trying to negotiate with the IMF to reduce the conditions, but so far, there has been no breakthrough.
The latest development is a major setback for Pakistan, which had been hoping to receive the next installment of financial assistance from the IMF. The country had been struggling to stabilize its economy, and the IMF’s latest conditions are likely to add to its woes.
The Pakistani government had been trying to negotiate with the IMF to reduce the conditions, but so far, there has been no breakthrough. The government has been facing opposition from various quarters, including the opposition parties and the public, who are opposed to the IMF’s conditions.
The IMF’s conditions are likely to have a significant impact on Pakistan’s economy, and the country is likely to face significant challenges in implementing them. The government has been trying to implement the conditions, but so far, there has been no significant progress.
The latest development is a major setback for Pakistan, which had been hoping to receive the next installment of financial assistance from the IMF. The country had been struggling to stabilize its economy, and the IMF’s latest conditions are likely to add to its woes.
Source:
https://repository.inshorts.com/articles/en/PTI/59b9d3a5-5834-41e6-9a90-ac21e94e71df
