After the IMF, Pakistan has now taken out a loan from the World Bank.
Pakistan, which faces a serious shortage of money, continually takes loans from foreign institutions. In the past three days, Pakistan has taken out a loan of around 130 billion rupees from the International Monetary Fund and the World Bank. Same Thursday, the IMF announced a loan of 500 million dollars (Rs 36,22,37,00,000) to Pakistan. After that, on Friday, a new debt of $ 1.3 billion was agreed between Pakistan and the World Bank. Already, a debt of 1 lakh 75,000 rupees has been contracted on every Pakistani citizen.
Agreement between the Pakistani government and the World Bank
The 200 million dollars of loans contracted with the World Bank will be used in the fight against the locusts. Seven types of loan agreements were signed by Pakistani director Noor Ahmed and Nazi Benhasin on behalf of the World Bank with representatives of the provincial governments of Pakistan. Pakistani Minister of Economic Affairs Makhdoom Khusro Bakhtiar was also present at the event.
The IMF also granted a loan of $ 500 million
On March 25, the IMF agreed to grant Pakistan a $ 500 million loan. The IMF has approved four pending reviews related to the cash-strapped country’s economic progress. In 2019, IMFA agreed to provide a $ 6 billion loan to Pakistan under the 39-month Extended Financing Facility (EFF). Last year it was interrupted by the Kovid-19 outbreak.
Inflation to rise in Pakistan due to new debt
Strict conditions were imposed on Pakistan’s loan to the IMF. Many economists have claimed that this IMF loan will further increase inflation in Pakistan. He talks about increasing tariffs in the electricity sector and removing tax breaks. The Pakistani central bank could raise interest rates in the coming days to curb inflation.
A loan of 1 lakh 75 thousand on each Pakistani
Pakistan is taking this loan at a time when the Imran Khan government recently confessed to the Parliament of Pakistan 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 loan amount. 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.
Pai-Pai thirsts for ‘poor’ Pakistan, Imran Khan takes rupee 416,000 crore loan again
Pakistan takes loans at expensive interest
Pakistan’s Ministry of Economic Affairs released a statement a few days ago claiming that in July-December of fiscal year 2020-2021, the Imran Khan government received $ 5.7 billion in foreign loans from several funding sources. In December, the Pakistani government received $ 1.2 billion from abroad, including $ 434 million taken from high-interest commercial banks.
Now a loan of 1 lakh 75 thousand on each Pakistani, will Imran Khan accept it by making a poor man?
Pakistan struggles to get a loan
As part of the debt relief of the G-20 countries, Pakistan cannot take out commercial loans at higher rates except with the prior approval according to the project of the International Monetary Fund and the World Bank . Because of this, not only China, but also many of Pakistan’s favorite countries are worried about investing or lending. The situation has even become such that China is also looking for additional collateral instead of debt.