By Admin 
The crisis in West Asia has given a double blow to Pakistan’s deteriorating economy. There has been a huge jump in the prices of oil and gas, due to which inflation has increased rapidly. To get out of this predicament, he once again has to reach out to the International Monetary Fund (IMF). IMF can again give loan to Pakistan. This time an initial agreement has been reached to give a loan of 1.2 billion dollars to the neighboring country.
Initial agreement with IMF
IMF said on Friday (February 27) that a preliminary agreement has been reached between Pakistan and the International Monetary Fund regarding the loan. However, funding of $1.2 billion has not been approved yet. The agreement is yet to be given the green signal by the IMF board. Only after this, Pakistan will be able to get a loan of $ 1 billion under ‘Extended Fund Facility’ and $ 210 million under Resilience and Sustainability Facility.
If Pakistan gets this amount, the amount released by IMF under this program will increase to 4.5 billion dollars. Let us tell you that till now IMF has given a loan of 3.3 billion dollars to Pakistan.
Pakistan’s economy is in ruins
Due to the war in the Middle East, inflation in Pakistan is hurting more than before. According to reports, Pakistan’s inflation rate was 5.8 percent in January, which has increased to 7 percent in February. Not only this, the condition of Pakistan’s economy is also in a worse condition, which has gone below even the developing countries. This is the reason why Pakistan sometimes extends its hands to its neighboring countries and sometimes to the World Bank and IMF.
energy crisis in pakistan
Energy crisis has increased in Pakistan due to the ongoing war between America, Israel and Iran. The prices of LPG, petrol and diesel have increased rapidly. In March itself, the prices of petrol and diesel have increased by more than 20 percent. At the same time, the rate of LPG is also continuously increasing. Lower and middle class are being most affected by this inflation.