International Monetary Fund (IMF) puts condition on Pakistan in exchange for giving loan

Pakistan should only provide subsidies to the poor !

Munich (Germany) – Pakistan is in a deep economic crisis, where its citizens are now on the verge of cash-strap and starvation. Currently, the prices of petrol and electricity in Pakistan have skyrocketed and foreign exchange reserves are said to be at minimum levels. Therefore, Pakistan has requested the IMF for a loan. Kristalina Georgieva, IMF Managing Director, participated in the ongoing Munich Security Conference in Munich. She said, “I want to stress that we are emphasising two things. Number one, tax revenues. Those who can, those that are making good money, public or private sector, need to contribute to the economy. Secondly, to have a fairer distribution of the pressures by moving subsidies only toward the people who really need them. It shouldn’t be that the wealthy benefit from subsidies. It should be the poor (who) benefit from them. We want the poor people of Pakistan to be protected.”

Last week, #Pakistan hiked the prices of petrol to Pakistani Rupees (Rs) 272 per litre to appease the IMF for unlocking the critical loan tranchehttps://t.co/wB42gzSoyT

— Hindustan Times (@htTweets) February 20, 2023

Furthermore, she added, “We want the poor people of Pakistan to be protected. Pakistan needs to take strong measures to avoid getting into a “dangerous place” where its debt needs to be restructured. This is the only way Pakistan can stand as a country”.

Editorial viewpoint

No doubt Pakistan will use the funds for anti-India activities. IMF should have also put the condition of not doing so !