Pakistan again reaches the court of IMF, new aid of 1.2 billion dollars approved, when will the story of economic dependence end?

Pakistan has once again approached the International Monetary Fund. The economic crisis has forced him to do so. It needs external help to run the country. The government talked to the IMF. After this new financial assistance was approved. This situation is coming up again and again. This clearly shows the economic weakness of Pakistan.

How much amount did you get this time?

This time Pakistan has received a total approval of 1.2 billion dollars. This amount will be given under two different schemes. A part of this is under the Extended Fund Facility. The second part will be available under the climate related scheme. The money will be released after the final approval of the board. This will definitely provide relief for some time. But this is not a permanent solution.

How was the agreement reached with IMF?

Long talks took place between IMF and Pakistan. Several rounds of discussions went on from February to March. There was no result earlier. Later the online conversation continued. In the end both sides agreed. The IMF said the review had been successful. After this this help was approved. This agreement has been signed with many conditions.

Under which schemes will money be available?

This help is being given under two schemes. The first scheme is EFF which is for 37 months. The second scheme is RSF which is for 28 months. About 1 billion dollars will be available under EFF. About $210 million will be available under RSF. Both the schemes are for different purposes. This will try to manage the economy.

Why is the condition of Pakistan bad?

Pakistan’s economy has been under pressure for a long time. Inflation and debt have worsened the situation. Foreign investment has also decreased. The government has to take loans again and again. There are problems in the energy sector also. The pace of improvement is slow. This is the reason why the crisis is not ending.

Will the reforms change the picture?

The IMF’s terms include several reforms. The government will have to control expenditure. The tax system will have to be strengthened. Changes will have to be brought in the energy sector. Confidence in the market will have to be increased. If these reforms are implemented properly then the situation can improve. But it won’t be easy.

What will be the path forward for Pakistan?

There is a big challenge before Pakistan. He will have to become self-reliant. Seeking help again and again will not solve the problem. Major changes in economic policies are necessary. If reforms are not made the crisis will persist. The coming time will decide whether Pakistan can recover or not.