The chances of the country’s economic recovery under the current coalition remain limited, but it appears that Pakistan will shortly get its next loan tranche from the International Monetary Fund (IMF). A supplementary budget was also developed at the request of the IMF, which increased the burden of inflation on the people, but the failure of the National Assembly and Senate to approve the Finance Bill 2023 has become an impediment in this respect.
The IMF board will vote in March on whether to issue a $1.2 billion tranche under the loan programme for Pakistan, and the announcement of the staff-level agreement is due at any moment. To meet the most significant criteria of the institution, the government has raised the rates of energy and gas, as well as enforced an increase in the General Sales Tax (GST) rate. All of these initiatives were implemented after reaching an agreement with the IMF, and the institution expressed satisfaction with all of them. In light of this, the government has produced a letter of intent for the agreement, which will be submitted after the regulatory procedure is finished.
Only time will tell if the agreements negotiated with the IMF to help the falling economy will result in any improvement, but the crisis has already reached the point where a senior government official has declared Pakistan in default. According to Defense Minister Khawaja Asif, Pakistan is bankrupt, and we live in a bankrupt nation. He also stated that standing on one’s own two feet is essential for stability. The answer to our issues rests inside the country itself. The IMF has no answer to Pakistan’s challenges. During his lecture, Khawaja Asif also stated that the establishment, bureaucracy, and politicians are all to blame for the current state of affairs in Pakistan since the constitution and the rule of law have been compromised. The ruling coalition has once again blamed the former administration for the current crisis. They claim that the Pakistan Tehreek-e-Insaf ruined the people and economy and that we are reconstructing them. Apart from politicians’ remarks and pronouncements, the fact is that the average man’s troubles are continually worsening owing to inflation. According to a World Bank estimate, 1.6 million youngsters in Pakistan missed their schooling because of the Corona outbreak. The impact of education deprivation will not be restricted to these individuals’ personal lives, but will also hurt the country and society as a whole.
