Islamabad: Before coming to power, Imran Khan had made lucrative promises to the people. He also talked about creating a ‘Naya Pakistan’. Which has completely failed. Due to all this, there is a possibility of increasing inflation in Pakistan. Pakistan had taken a loan of about US $ 300 crore from Saudi Arabia a year ago. Which will now have to be returned to Pakistan, this loan was taken every quarter at the rate of 4 percent interest. It has also been clarified in a report by news agency ANI that a sharp increase in inflation may reduce demand. This will have a direct impact on the economy of Pakistan.
Saudi Arabia agreed to restart its financial aid to Pakistan in October 2021. Which included oil supplies worth about the US $ 300 million as a safe deposit and US $ 120 to 150 million as deferred payment. This was expected to help Pakistan convince the International Monetary Fund (IMF) about its financial plan. Its representatives have last week asked Islamabad to put more emphasis on economic reforms, ‘The Times of Israel’ reported. He has asked to go higher than just increasing the tax.
The fiscal deficit crossed $ 9 billion
At the same time, Zaidi, the former head of Pakistan’s tax agency, has said that Pakistan has reached the verge of bankruptcy. The current account deficit (CAD) has crossed $9 billion in the first half of the financial year, which is 5.7 percent of the GDP. If the CAD continues to grow like this, then Pakistan will not be able to come out of the debt trap. The domestic and foreign debt on Pakistan has exceeded 50 thousand billion Pakistani rupees.
No money to pay off debt
Pakistan does not have the money to repay the loan. During the tenure of Imran Khan, the government has taken a new loan of 20.7 trillion Pakistani rupees. A few days ago, Imran had gone to China in the hope of a loan of $ 300 billion, which could not be completed. As long as Pakistan’s name is included in the gray list of FATF, it cannot even get a new loan. Inflation is touching the sky in the country.
