Lahore: Pakistan, which is facing a severe financial crisis, has reached the verge of bankruptcy. The rest of the Pakistani economy has been broken by the Coronavirus. Pakistan, which is on the threshold of Bengali, has again taken a new loan of $ 1.2 billion (Rs 87,56,58,00,000) to run its economy. With this new amount of debt, Pakistan has so far raised new borrowings of $ 5.7 billion (Rs 4,16,01,73,50,000) in the first half of the current financial year. At the same time, Prime Minister Imran Khan is blaming the previous governments for the bad economic conditions of the country even after running the government for two and a half years. The situation has reached such a point in Pakistan that even the Emraan Khan government has to be manipulated to pay salaries to government employees. Pakistan’s biggest donors Saudi Arabia and the UAE are demanding their multi-billion dollar debt back. At the same time, China, the evergreen friend of Pakistan, is also reluctant to give loans to Pakistan.
Pakistan’s Ministry of Economic Affairs issued a statement saying that during July-December of the financial year 2020-21, the Imran Khan government received an amount of $ 5.7 billion as external loans from several financing sources. In December, the government of Pakistan received $ 1.2 billion from abroad, including $ 434 million from commercial banks at high interest. By the end of the year 2020, the total debt of Pakistan has increased by 11.5 per cent per annum to Rs 35.8 trillion due to the poor economic reforms of the Imran Khan government. After which, putting its own mistakes on the previous governments, the Pakistani Finance Ministry said that due to the wrong economic policies of the previous government, the country is facing excessive exchange rate and excessive borrowing.
Under debt relief from G-20 countries, Pakistan cannot take commercial loans at higher rates, except with prior approval as per the draft International Monetary Fund and World Bank. Because of this, not only China, many of Pakistan’s favorite countries are also afraid to invest or give loans. The situation has even come so far that China is also seeking additional guarantees in lieu of debt.
Pakistani Prime Minister Imran Khan has requested the international community to suspend loan payments to low-income and most affected countries and cancel the liability of Least Developed Countries until the end of the coronavirus epidemic. Pakistan’s economic woes have been compounded by the cash crisis and the government of Imran Khan is arranging financial support from global bodies including the International Monetary Fund (IMF) to overcome the crisis.
