IMF want do more from Pakistan then IMF release the next installment. Miftah Ismail in one of his articles claimed rejected the claim of the incumbent Finance Minister Ishaq Dar regarding the economy and clearly said that the risk of bankruptcy of Pakistan has increased to a dangerous level. “Now the government has no room for error.”
Pakistan has no other option left they have to accept the conditions of IMF. Ishaq Dar is trying to conveyance IMF. IMF wants Pakistan government have to implement more taxes on Pakistani people so that they can pay debt back to IMF.
SBP reserves fall by $134M TO $7.8BN, they only have maximum 2 months reserve which is Pakistan’s default risk reaches alarming levels: Miftah Ismail.
Importers in Pakistan are facing many problem in currency exchange rate they are doing less imports. Pakistan government not collecting huge tax because imports are down.
People in Pakistan are in fear of default of Pakistan. They are closing there business in Pakistan. Turkey and Chinese companies also saying that we are not getting payments on time.
Pakistan Current exchange rate
Pakistan current exchange rate 223.95 but business mans getting exchange rate in 265 per dollar. Pakistan don’t have enough reserves of foreign currency so they give to business in Pakistan to import.
Pakistani delegation leaves for Russia for cheaper oil deal talks and Minister of Petroleum also with them to get some relief in oil and gas price from Russia.
It is pertinent to mention here that the SBP received $1.5 billion from ADB on October 26, 2022 as disbursement of loan for the government of Pakistan. IMF program will help to get out Pakistan from default risk.
PAKISTAN, OTHER EMERGING NATIONS AT HIGH RISK OF CURRENCY CRISIS. Nomura have published 7 names in there article in which Pakistan is also in list. This year Pakistani currency face many crisis because of rapidly increase in inflation. Russia Ukraine war is also a causes of this inflation.