The Minister of Home Affairs Pakistan Rana Sanaullah on Sunday said that the International Monetary Fund (IMF) had not released a stage for the 6 billion USD bailout under the expanded funding facility, despite making the country “dancing for tone.”
Responding to a question about the IMF, Mr Sanaullah said that the government had received the requirements “that we did not support”. He also urged the international lender to release the stage without delay so that the country could free itself from “difficult situations”, Geo News reported.
Minister Federal said that Pakistan is currently experiencing a difficult situation in terms of economic.
“For the sake of our country, we must make a difficult decision because the country is going to improve,” added Sanaullah.
Referring to the previous government led by the Pakistani Tehreek-E-Insaf (PTI) regime, Mr Sananaullah said that the country was governed by a group that “did nothing but did revenge”.
Meanwhile, Pakistan plans to borrow 5.5 trillion Pakistani rupees (PKR) from the international lender in the current fiscal year to maintain their foreign exchange reserves, pay back loans and financial deficits.
Previously, in an annual budget for 2022-23, the Pakistani government had project that they would only borrow 3.17 trillion PKR from international sources. However, the budget does not include financing from the International Monetary Fund (IMF), Saudi Arabia and a safe Chinese deposit, the Pakistani newspaper reported by the country.
The projected international loan volume has now increased to PKR 5.5 trillion after including funds from the sources mentioned above.
This new loan will be 74 percent higher than the previous government estimate. After the revision, PKR external resources 5.503 trillion projected to 2022-23 greater than 200 percent than the initial PKR 2.7 trillion budgeted for 2021-22.
The current government is still struggling to regulate dollars and also requires external financing of USD 41 billion in the next fiscal year, reporting the country.
The government must pay back the previous loan of USD 21 billion and the current account deficit has been projected on USD 12 billion and USD 8 billion to increase foreign exchange reserves to USD18 billion in the upcoming financial year.
Therefore, the government has planned to borrow massively in the current fiscal year.