Pakistan Economy Crisis: Pakistan is facing a huge economic crisis. Meanwhile, Moody’s has issued an alert regarding Pakistan’s economic condition and liquidity. Moody’s Investors Service says that the International Monetary Fund (IMF) may ask Pakistan to take measures to increase revenue before giving funds.
According to Moody’s, Pakistan’s external situation is under great pressure. In a statement issued by the credit-rating company Moody’s, it was said that Pakistan’s liquidity and economic crisis are at great risk. Moody’s said that Pakistan’s ability to accumulate funds to run the country for the next few years also remains at risk. Pakistan’s condition is getting worse in raising money.
IMF funding important for Pakistan
In its statement, Moody’s said that Pakistan had taken measures to remove the imbalance with the IMF, but it is not yet certain when the IMI will release the funds to Pakistan. IMF said that recovering from the huge economic crisis is very important for Pakistan at this time.
Heavy fall in foreign exchange reserves
Pakistan’s foreign position has been under great pressure for some time, due to which there has been a sharp decline in its foreign exchange reserves. Pakistan is struggling with huge debt and is trying to repay the loan amidst political chaos and deteriorating security. Explain that even after the IMF meeting with Pakistan, the IMF did not release the bailout fund.
IMF had given this proposal
In this meeting which lasted for about 10 days, Pakistan did not agree to the terms of the IMF. The IMF had asked to cut the funds being spent on defence. Pakistan spends about 4 percent of its GDP on defense.
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