A closer look at the economic and financial conditions of Pakistan would definitely give you a frustration and leave you in a chaos. The country has been under a bad condition of being trapped and paralyzed by international loans and funds. This crisis is not something new or surprising for any of us. We all know the dependence of Pakistan on financial aids and loans from foreign countries has been the fortune of Pakistan’s economy since ages. At the end of each passing month, the country faces a situation where it needs a lot to clear it dues to different countries and therefore it has to look for loans and funds.
International Monetary Fund has been apparently a great support for Pakistan when it comes to providing loans and financial help to the country. Using ‘apparently’ here keeps a meaningful impact regarding the policies and strategies of IMF. It looks like no other body more sincere and helpful than IMF is there for Pakistan. But if you ponder over it, Pakistan has become a slave of IMF and its member countries since it has got the lower hand in the situation. To help and support is a different thing than exploiting the worse conditions of a country.
How Much Debt Pakistan Need To Pay ?
A total of $47 billion is the actual debt that Pakistan needs to pay back altogether. That’s unquestionably a huge amount that too for a country like Pakistan with its head under water.
According to a report of IMF, in 2013, Pakistan required $76.19 billion (Rs 8 trillion) or 30 percent of its per annum GDP in order to pay off its maturing debt. This definitely makes Pakistan an emerging country in the list of indebted countries.
In 2011, the estimated amount that each Pakistani needed to pay was Rs. 57000 according to tribune.
According to Business Recorder’s report:
“Payment of $1.15 billion to the IMF during second quarter of FY14 was the peak of the loan repayment schedule and despite a challenge of depleting forex reserves, Pakistan successfully managed all payment. Now, the situation is much better, supported by rising foreign inflows. Debt servicing during this fiscal year will not put any pressure on the country’s forex reserves.”
Also, Pakistan needs to pay almost $1.3 billion to IMF in fiscal year 2015 as debt on account of Stand By Arrangement (SBA).
How Pakistani Nation Has Become Handicapped
From getting an idea about how much wealth constraint Pakistan has become due to its high debt, it is quite clear that nation has been facing many domestic issues consequently. The debt burden has suffocated public to spend money openly and resulted in inflation. Pakistan is deprived of basic facilities at public level like healthcare and education because it can spend just three percent of its GDP on these services.
The demands that IMF propose to give loan to Pakistan is a part of its strategy to bind the country completely under its clutches. Privatization in most of the departments has been resulting in creating chaos for poor ones who can not afford the high demanded costs. The nation has become paralyzed in such condition where it can not move a single step forward without the directions of institutes like IMF.
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