Recently the International Monetary Fund (IMF) was seen reprimanding Pakistan. The global body had shown strictness against PAK for giving wrong trade figures and had sought full accounting of $11 billion from it. But once again he seems to be kind to the country which has been suffering from economic crisis for a long time. On Wednesday, a Staff Level Agreement (SLA) was signed between Pakistan and IMF regarding the loan program. After this, the way for him to get 1.2 billion dollars (about 10600 crore Indian rupees) has also been cleared.
in two categories Pakistan will get money
Under this new agreement, Pakistan will be provided $1 billion (more than Rs 8816 crore) under the Extended Fund Facility (EFF) from the IMF. Whereas an amount of 200 million dollars (about Rs 1763 crore) will be given under the Resilience and Sustainability Facility (RSF). Last week, the IMF mission led by Eva Petrova had discussed the second review of EFF with Pakistani officials, after which now the way has been cleared for Pakistan to get another installment of the loan.
IMF board approval still pending
According to the report of Pakistani media Dawn, the staff label agreement has been reached, but it still needs board approval. After this agreement, Petrova said on Wednesday that this agreement is dependent on the approval of the Executive Board of the IMF. Petrova said that Pakistan’s economic programs have been strengthened with the support of EFF. With this, the confidence of the country’s market is being re-established.
Petrova also talked about the economic recovery of the country. In the financial year 2024-25, the current account is in surplus for the first time in 14 years, the fiscal balance program is better than the target, inflation is controlled and external reserves have strengthened. Overall, recovery and rapid improvement is being seen in the economic situation of Pakistan. Meanwhile, he said that the recent floods have especially had a negative impact on the agriculture sector.
Why was Pakistan reprimanded?
Pakistan’s economy, which has been facing economic crisis for a long time, is running on loans received from friendly countries including IMF and other financial organizations. The International Monetary Fund has given him a huge loan. But Pakistan played with this helper. In fact, according to a report by Express Tribune recently, PAK gave wrong data of trade figures to the IMF, which is helping it financially, due to which the IMF is angry and has clearly asked the Pakistan government to publicly disclose and resolve the manipulation of 11 billion dollars in its trade figures.
The most shocking thing is that Pakistani officials themselves have accepted this mistake. According to him, the trade data submitted to the Geneva-based International Trade Center was not comprehensive. Along with this, he also admitted that some import figures were missing from this data.
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