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Pakistan-IMF Deal: The date of Friday, June 30 is very important for the Pakistani economy going through an economic crisis. Pakistan is eagerly waiting for the next installment of the bailout package from the International Monetary Fund, the deadline for which is ending on June 30. If the IMF does not give Pakistan a bailout loan of $ 1.1 billion, then Pakistan can become a pauper. The biggest financial crisis can arise there.
In July 2019, the IMF had approved the loan to Pakistan under the bailout package, which also had conditions. This loan was to be released after four quarterly and four semi-annual reviews. The condition of IMF was that Pakistan would work to speed up economic reforms. A loan of $ 6 billion was to be given to the IMF in 39 months, whose deadline was earlier 2 October 2022, which was extended to 30 June 2023.
The IMF had set several conditions for the bailout package, including increasing income, increasing the tax base, preparing such a policy with the free-market, which can overcome the economic crisis. IMF has also asked Pakistan to reduce its defense budget.
Till August 2022, the IMF was issuing loan installments to Pakistan as it was implementing the conditions. But the impact of Covid, Ukraine war, backbreaking inflation and Imran Khan After being ousted from power, the crisis on Pakistan’s economy deepened. The conditions that the IMF had set for giving loan to Pakistan were put on hold.
However, keeping the hope of getting bailout package, Pakistan took big decisions. Again the budget was presented in which the Government of Pakistan increased the tax rates. However, $ 1.1 billion from the IMF is very important for Pakistan to continue the import of essential things. If this amount is not received, then the economic crisis may deepen there.
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