The International Monetary Fund (IMF) has agreed to help them in response to Pakistan’s request. But they gave several conditions to the fledgling country. As the dollar cap was asked to be removed. Many other conditions were also laid down. For example, Shahbaz Sharif government had to present a mini budget. As a result, prices of daily necessities could have increased further. The government of Pakistan is under a lot of pressure.
This time more conditions have been given to Pakistan. Jinnah’s country will not get even a single penny of aid from the IMF if they are not accepted. As a result, India’s neighboring states will plunge into darkness. Pakistan has taken loans from International Monetary Fund many times before. But till today they could not repay that money. As a result, Pakistan has to get a lot of speed to get financial aid this time.
In fact, there is an impasse between the IMF and the Pakistan government over a financial gap of Rs 900 billion. According to the International Monetary Fund, Pakistan will get financial aid only if the deficit is met. But Pakistan is unable to fulfill this condition. Asked Pakistan to increase GST rate from 17 to 18 percent. Failing this, it suggested imposing 17 percent GST on petrol.
Pakistan’s expenditure is much higher than its income. According to the IMF, to reach the target of 7470 billion rupees, the Federal Board of Revenue will have a deficit of 130 billion rupees. They reported that Pakistan has a GDP deficit of 0.9 percent. This is due to reduction in tax rate, increase in expenditure and other factors. There is a deficit of around 800 to 850 billion rupees.
However, this has been denied by Pakistan. They said they have a GDP deficit of 0.5 to 0.6 percent. That means there is a deficit of 400 to 450 billion rupees. IMF has already given loans to Pakistan 22 times. But this time the conditions are much more stringent. They have also informed that Pakistan should not repay China’s debt with IMF loan money. Incidentally, Pakistan has a debt of more than 275 billion dollars. That means every Pakistani has a debt of 2 lakh 60 thousand rupees. More than 75 percent of the country’s income is used to repay the debt.