Facing bankruptcy, Pakistan requested the IMF to send a review team. IMF has refused to send its team.
Pakistan, which is facing an economic crisis, has now got a setback from the International Monetary Fund (IMF). IMF has refused to give economic relief to Pakistan. Pakistan had requested to send a review team, which turned down by the IMF. According to a report, due to the economic crisis, the Pakistani government is also planning to cut the salary of the employees by 10 percent, and with this crisis, It is also considering other measures to recover. These measures include cutting the expenditure on ministries by 15 percent. It is also being said that the number of ministers and ministers of state can also reduced.
What is the job of the IMF review team?
The job of the IMF’s review team is to take stock of the real economic situation and review it to deal with the problem. In view of its economic crisis, the Government of Pakistan had requested the IMF to send a review team to visit the country. Now reports are coming that IMF has refused to send its review team to Pakistan. As a result, it is believed that Pakistan has not got relief even from the IMF.
How many foreign exchange reserves left?
According to reports, the foreign exchange reserves of the State Bank of Pakistan (SBP) have recently touched an all-time low of $4.343 billion, which is only sufficient for two weeks. At the same time, according to Reuters news, Pakistan is grappling with a balance of payments crisis, and its foreign exchange reserves have dropped to $4.6 billion, which is barely enough to cover three weeks of imports. Pakistan received a bailout of $6 billion in 2019, which topped $1 billion earlier this year. It believed that during the economic crisis of a decade, the economic condition of Pakistan is most critical at present. Inflation is at its peak in the country. Gas prices have seen an increase of 70 percent and electricity bills by 30 percent. To overcome the situation, Pakistan has approached many countries including the IMF.