Finance Minister Asad Umar recently uploaded a video on PTI’s official Twitter handle announcing that the government would be discussing the possibility of a bailout program.
— PTI (@PTIofficial) October 8, 2018
He claimed that the distribution would be implemented equally ensuring that the burden does not fall on the low-income classes. This agreement is said to be aimed at bringing Pakistan out of the long-standing crisis left by the previous governments.
Umar also pointed towards a theme being followed as each government in Pakistan’s history has approached the IMF during their tenure since 1990.
Umar stated that PTI intends to break this cycle and bring Pakistan out of the IMF programs altogether. To accomplish this, they are meant to meet the World Bank this week. Umar did not mention the exact amount Pakistan intends to seek from the IMF, however, analysts and experts have provided a ballpark figure of 12 billion dollars.
Imran Khan also mentioned during a speech in the previous week that Pakistan may be seeking similar loans to help come out of the crisis it has been for years. He intends to reserve the funds as opposed to continue asking neighbouring and friendly countries for help.
It is evident that Pakistan has and is facing economic challenges; the growth of the economy seems to be on a constant downward gradient with little in reserves and many deficits. The intent of the new government is to come up with policies that are not short-lived and promise the stability of the economy in the long run. IMF has stated that if such a decision is delayed any further, the inflation may rise more than it already has and further slow down the growth of the economy.
It is anticipated that if the government delays their decision to tackle the situation it is bound to only get worse with no solution.
The financial sector has urged the government to put an end to their inactivity and act fast if they wish to ensure the preservation of an already deteriorating economy.