IMF Indicates A Ban On Lending To Pakistan
IMF Indicates a ban on lending to Pakistan, likely to get worse due to the Corona crisis. Faced with an economic crisis, the new sword of danger has again hung over Pakistan’s head. This time the International Monetary Fund (IMF) indicates a prohibition on short-term lending to Pakistan.
With such a loan, Pakistan used to raise funds for the budget-related provisions, but the latest IMF sign is expected to create a leprous situation for Pakistan.
This year in Pakistan, about 1.5 percent more money will be needed than the previous year’s budget. With this, he will be able to fulfill his domestic needs and fulfill international responsibilities.
According to the IMF, Pakistan will need Rs 1 lakh crore for the coming financial year. But it is difficult to arrange this much money in the current tax structure. In the current year too, economic activity has been affected due to the outbreak of Coronavirus.
This has made the situation of the collection of taxes worse. According to economic experts, the number of taxpayers on one side is very less in Pakistan. This time the recovery from them has also reduced. Whereas due to the COVID epidemic, the government has been more responsible.
In the future, spending on public utilities is expected to increase. In such a situation, the burden will fall on the government, while the economic activity is expected to be slow in the coming year.
In line with the IMF’s stated expectation, the Finance Ministry of Pakistan has clarified that short-term and medium-term loans will be needed to meet the requirements. It is difficult to work without them.
The way Pakistan has taken loans from Saudi Arabia, UAE, and China in recent years. Due to this, now there is less hope of getting loans from these countries in the coming times.
