Sri Lanka-like situation may arise in Pakistan in the coming days, IMF issued a warning

Posted on 3rd Sep 2022 by rohit kumar

Pakistan is currently facing an extreme economic crisis. Here the rate of inflation has reached 27 percent as compared to the last 47 years and it is expected to increase further. The International Monetary Fund (IMF) has warned against this.

 

The IMF has said, "Rise in the price of food and fuel can lead to public protests in the country, which has the potential to create instability." The News has given this information by quoting the released executive summary of the IMF's seventh and eighth reviews under the Extended Fund Facility (EFF).

 

The News said in its report, that given the kind of environment in the country at this time, the risk of implementing a new scheme is high. This could make things worse.

 

It said, "The ongoing war in Ukraine has increased the prices of food and fuel and the current global financial situation is also going to put pressure on Pakistan's economy, which will stabilize the exchange rate and financial relations with other countries." There will be trouble in keeping it too.

 

The IMF said, "In addition to the risks of protests, increased socio-political pressure is also expected, which may affect the implementation of policy and reform arrangements." Especially given the weak political alliance here and their low majority in Parliament, its possibilities are more visible.

 

According to the IMF, as a result of all this, policy decisions can be affected, there may be difficulties in the formulation of strategies related to the economy, and there is also a possibility of increasing credit instability.

 

It is known that Pakistan is currently facing the havoc of floods. Meanwhile, the Executive Board of the International Monetary Fund (IMF) has approved the revival of Pakistan's Extended Fund Facility (EFF) program.

 

Under this, the 7th and 8th installments of USD 1.17 billion (over 9300 crores) will be released to the country. This is nothing less than relief for Pakistan at this time.

 

Also Read: Sri Lanka Crisis: India advocated for a loan to Sri Lanka from IMF, and said- transparency is important in the matter

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