Pakistan’s economic position is currently unstable. The IMF and the government have been negotiating for a rescue package for a long time, but the talks are proving to be challenging. According to reports, the IMF has made further conditions, including a $2.4 billion Chinese guarantee. Pakistan now finds itself in a challenging situation as it is unclear if China will be prepared to offer the assurance. The fact that Pakistan must pay back an external debt of $3.7 billion between May and June 2023 adds to the difficulty of the issue. Pakistan must thus find a method to raise $6.1 billion in the upcoming six months. This is a tall order, but it is hoped Pakistan will be able to do it.
In order to solve the economic problem, the administration has already taken some action. Fuel costs have increased, while gas and electricity subsidies have been reduced. Although the public has not supported these actions, they are essential to reducing the budget deficit. Additionally, the administration is attempting to strengthen ties with friendly nations. It has discussions with the US, Saudi Arabia, and China. These negotiations were fruitful, and Pakistan’s friends gave it some financial support.
The situation is still unstable, though. In the upcoming six months, Pakistan has to find a means to raise $6.1 billion. Additionally, it has to mend fences with the IMF. The people around them are going through a challenging moment. They are concerned about the future and are already suffering the impacts of the economic crisis. To handle the situation, the government must act promptly and decisively. Pakistan’s future depends on it.
