Pakistani Prime Minister Imran Khan, who came to power promising to create a “new Pakistan”, has decided to accept Pakistan only by going into debt. Before coming to power, Imran promised to end the culture of borrowing from foreign institutions, but now he takes loans on his own. The last case is that of the International Monetary Fund, through which Pakistan will borrow 500 million dollars. This also when every Pakistani citizen now has a loan of 1 lakh 75,000 rupees.
An agreement was reached on Tuesday between the Pakistani government and the IMF on reforms. After this agreement, the way for Pakistan to obtain a loan of 500 million dollars from the IMF was cleared. The statement released by Pakistan’s Ministry of Finance said the economy will be sustained and structural reforms will be undertaken. Finance Minister Abdul Hafiz Sheikh said this was good news for Pakistan.
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Pakistan is taking this loan at a time when the Imran Khan government recently confessed to the Pakistani parliament that now every Pakistani has a debt of 1 lakh 75,000 rupees. The contribution of Imran Khan’s government in this regard is Rs 54,901, or 46% of the total debt. This debt burden has increased for Pakistanis over the past two years. In other words, when Imran took power in Pakistan, every citizen of the country had a debt of Rs 119,999.
The Imran government also violated the country’s law
While making a statement on fiscal policy for the fiscal year 2020-2021, Pakistan’s Ministry of Finance also acknowledged that the Imran Khan government had failed to reduce the budget deficit to 4% of the national economy. The government thus violated the 2005 Fiscal Responsibility and Credit Limit Act (FRDL). As such, Pakistan’s total budget deficit was 8.6% of GDP, more than double the limit of the FRDL Act.
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What is Pakistani FRDL law
Pakistan passed the Fiscal Responsibility and Credit Limit Act (FRDL) 2005 to deal with the country’s growing external debt. He predicted that the budget deficit should not exceed 4% of the country’s economy. He also said that all government policies regarding the treasury should be thoroughly studied.
Pak government withheld information from people
The report was presented to the Pakistani parliament on Thursday. This report is described as the least informed policy statement in Pakistani history. Officials said the lending policy office presented a detailed draft policy to the finance ministry. However, it was ordered that this report be included in only 11 pages with the title.
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Imran Khan puts billions of dollars in debt on Pakistan
The two-year fiscal policy statement states that during the tenure of Pakistani Tehreek-e-Insaf (PTI) government of Imran Khan, the debt of Rs 54,901 increased on the people. Pakistan’s total public debt as of June 2018 was 120.099 billion Pakistani rupees. In the first year of the government led by Imran Khan, this amount of debt increased by 28% to 33.590 billion rupees, while in the following year it increased by 14%.