IMF Made Us “Dance His Way”, But Didn’t Release Loan: Pak . Minister


Pakistan planned to borrow PKR 5.5 trillion from international lenders. (representative)

Islamabad:

Pakistan’s Interior Minister Rana Sanaullah said on Sunday that the International Monetary Fund (IMF) had not released the tranche of the $6 billion bailout package under the expanded fund facility, although doing so would “dance the country to its will.” “.

In response to a question about the IMF, Mr Sanaullah said the government had accepted terms “which we were not in favor of”. He also urged the international lender to release the tranche without delay so the country could free itself from the “difficult situation,” Geo News reported.

The federal minister said Pakistan is currently going through a difficult economic situation.

“In the interest of the country, we have to make difficult decisions that will put the country on the path to improvement,” added Mr Sanaullah.

Referring to the previous government led by the Pakistani regime of Tehreek-e-Insaf (PTI), Mr Sanaullah said the country was ruled by a group that “did nothing but carry out a vendetta”.

Meanwhile, Pakistan planned to borrow 5.5 trillion Pakistani rupees (PKR) from international lenders in the current fiscal year to maintain its foreign exchange reserves, repay previous loans and finance the current account deficit.

Earlier, in the annual budget for 2022-23, the Pakistani government had forecast that it would borrow only PKR 3.17 trillion from international sources. However, the budget did not include funding from the International Monetary Fund (IMF), Saudi Arabia and SAFE China deposits, Pakistani newspaper The Nation reported.

The volume of expected international loans has now risen to PKR 5.5 trillion, after borrowing funding from the above sources.

This new loan will be 74 percent higher than the government’s previous estimates. After the review, external resources of PKR 5.503 trillion projected for 2022-23 are more than 200 percent higher than the initial PKR 2.7 trillion budgeted for 2021-22.

The current administration is still struggling to regulate dollars and also needs external financing of $41 billion in the coming fiscal year, The Nation reports.

The government would have to repay the previous $21 billion loan and the current account deficit is estimated at $12 billion and $8 billion more for raising foreign exchange reserves to $18 billion in the coming fiscal year.

Therefore, the government plans to borrow massively in the current fiscal year.

(Except for the headline, this story has not been edited by NDTV staff and has been published from a syndicated feed.)

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