PAKISTAN NEWS: Pakistan is in deep economic crisis. Here’s how much financial help it needs

Imran Khan, whose claim to political power was based on the promise of a new Pakistan, seems to be returning to one of his pledges to strengthen the country’s economy, as a recent media report says Pakistan is now facing a major economic crisis. In history. According to The News International, one of the largest English-language newspapers in Pakistan, the country is in dire financial straits – the Imran Khan-led government needed $ 51.6 billion in foreign currency over the next two years (2021-2023) to meet its needs.

According to the report, Pakistan’s biggest foreign exchange demand stands at $ 23.6 billion in 2021-22 and $ 28 billion in 2022-23. This development comes despite the expected estimates evaluated by the International Monetary Fund (IMF). Pakistani authorities are now trying to make a last-ditch effort to negotiate a labor-level agreement with the IMF to close the foreign exchange demand.

In a recent report, the World Bank noted that Pakistan has joined the list of the top ten countries with the highest foreign debt. Citing International Debt Statistics in 2022, The News International previously reported that there was a “wide variation” in the rate at which foreign debt was collected in DSSI non-compliant countries – including major group lenders including Pakistan. A World Bank report also revealed that Pakistan’s foreign debt increased by 8 percent; In June this year, another report revealed that the Imran government had borrowed $ 442 million from the World Bank.

However, with the suspension of program loans from the World Bank and the Asia Development Bank (ADB) now, Pakistan is at risk of serious economic downturn – and the head of a major foreign currency need – to deal with what it needs to do anyway to make an agreement with the IMF under an existing institution ( EFF) of $ 6 billion during the ongoing protests in Washington.

In the meantime, the WB and ADB will continue to lend on project loans but retain the capacity to start projects, the fees being plummeted. Debt rating agencies can continue to lower national rates, so monetization through the issuance of overseas bonds will be costly, reports The News International.

The IMF has called for an end to the tax evasion system and has indicated that separate GST exemptions and prices should be in line with the 17 percent standard, according to officials identified by the ANI news agency GST level 17 percent should be placed on Petroleum Oil Lubricants products (POL). The GST level for fertilizers, tractors and other items must be provided at a standard 17 percent rate, per report. However, Pakistani authorities oppose the proposals, saying they would jeopardize the neglected agricultural sector.

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