IMF conditions include raising taxes and cutting subsidies. The government will have to face public anger regarding this. Shahbaz Sharif said, ‘I will not go into details, but will say that our economic challenge is unimaginable. The terms we will have to agree to with the IMF are unimaginable. But we have to agree to the conditions. Pakistan is currently grappling with depleting foreign exchange reserves. Payments are not being made to foreign companies, due to which essential goods are lying at the port itself.
forex reserves fall again
Pakistan’s foreign exchange reserves have fallen again this week. Foreign exchange reserves fell to $3.1 billion. Analysts say that Pakistan can only import less than three weeks from this. While the rupee has reached a lower level against the US dollar. Pakistan, with the world’s fifth-largest population, is no longer issuing letters of credit for anything except essential food and medicines, leading to a backlog of thousands of shipping containers at the port of Karachi.
Economic Crisis Pakistan: Money is hidden under the land of Pakistan
Inflation on its record of 48 years
The data on Wednesday showed that inflation is at its highest level in 48 years. Because of this bread is disappearing from the plates of Pakistanis. People in Pakistan say that poor people will not survive. Along with this, the public says that petrol is becoming increasingly expensive, should they walk now? Even before Pakistan goes bankrupt, it has accelerated the deal with IMF. To make the deal, Pakistan has already increased the price of petrol. But the IMF now wants to eliminate more subsidy from petrol.