Pakistan Economic Crisis: Pakistan, which is facing cash crunch, has sought another relief package of $6-8 billion from the International Monetary Fund (IMF). A media report said on Saturday that Pakistan has made a formal request to release a relief package through Climate Finance. Pakistan has also requested the IMF to send a review mission next month for the next relief package under the Extended Fund Facility (EFF). Geo News told Washington that the exact size and time frame of the new package will be decided only after a consensus is reached on the outline of the next program in May 2024.
What did the Finance Minister of Pakistan say?
A high-level delegation led by Pakistan Finance Minister Muhammad Aurangzeb is currently in Washington to attend the annual spring meetings of the IMF/World Bank. Meanwhile, Aurangzeb told the World Bank that with the reform agenda fully implemented in key sectors, Pakistan’s economy has the potential to grow to US$3,000 billion by 2047.
people becoming increasingly poor
The World Bank recently said that Pakistan’s economic situation is deteriorating and more than 10 million people may fall below the poverty line. This estimate of the World Bank is based on rising inflation along with a slow economic growth rate of 1.8 percent, which has reached 26 percent in the current financial year. The report said that Pakistan may remain in deficit for three years. The World Bank said that about 98 million Pakistanis are already below the poverty line. At the same time, the poverty rate remains at around 40 percent. Even people living just above the poverty line are at risk of falling below it. In the first quarter of this financial year, the inflation rate in Pakistan was above 30 percent.
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