By Admin 
- IMF advised Pakistan to increase tax collection and continue strict policies.
IMF Loan to Pakistan: International Monetary Fund i.e. IMF has given big relief to Pakistan. IMF has approved new financial assistance of about 1.32 billion dollars for Pakistan. This approval has been given despite India’s objections. India had raised issues related to terrorism financing and regional security in the IMF board meeting, but even after this Pakistan got approval to release this fund.
This approval has been given after the completion of the first review of Pakistan’s economic reform program under the Extended Fund Facility (EFF) program of IMF. According to Reuters report, Pakistan will get about $1.1 billion under EFF and $220 million under Resilience and Sustainability Facility.
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Total aid increased to $4.8 billion
Let us tell you that after this new approval, the total amount received by Pakistan under these two programs of IMF will increase to about 4.8 billion dollars. IMF says that Pakistan has shown progress in stabilizing its economy and implementing necessary economic reforms.
Why was help given to Pakistan?
According to IMF, Pakistan has shown improvement on many economic fronts in recent months. These include such as…
- reduction in inflation rate
- improvement in foreign exchange reserves
- improving fiscal discipline
- implementing economic reforms
IMF said that after going through a serious economic crisis, Pakistan’s economy is now slowly getting back on track.
IMF gave advice
IMF has clearly told Pakistan that to maintain economic stability it will have to continue reforms. This includes…
- increasing tax collection
- reducing energy sector losses
- maintain tight monetary policies
- control inflation
India had expressed objection
India had expressed concern in the IMF board over repeated financial assistance given to Pakistan. India said that this funding could be misused and could affect regional security. However, the IMF Board approved the review despite these objections.
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Pakistan welcomed the decision
Pakistan government welcomed the IMF’s decision and said that this will strengthen the country’s foreign exchange reserves, will also give impetus to economic reforms and increase the confidence of investors. Along with this, Pakistan also said that it will continue to implement the reforms decided by IMF.