Islamabad: International Monetary Funds (IMF) intends to prohibit Pakistan borrowing more from China, according to reports.
Islamabad’s plan to find 7.9 billion PKR from China for the China Pakistani Economic Corridor project (CPEC) now tends to depend on IMF recommendations.
Encouraging the economy of Pakistan with the help of non -sustainable external doles and Pakistan really needs structural reforms. The IMF has filed an objection to Pakistani loans from China and high payments made to China Independent Power Producers (IPP), suggesting Islamabad reorganizing its energy agreements with Beijing, reporting financial posts.
Pakistan must pay more than PR. 350 billion power contributions for several Chinese IPPs operating in this country. The IMF request follows the rejection of Beijing to modify the provisions of the agreement for the project under the CPEC.
The main part of the PKR budget expenditure of 3,950 billion (USD 19.5 billion) – More than 40 PC from the total federal budget expenditure (PKR 9,502 billion; USD 47 billion) is allocated for debt services that increased by 29.1 PC from the previous year.
The Pakistani economy faces a challenging task because the budget for the TA 2022-23 has failed to overcome the main structural problems that are proven to be an obstacle for the rise of the state.
The country’s economy has been damaged by a large deficit when inflation becomes out of control with the threat that will soon occur. With the IMF agreement depending on the balance, the authorities should try to take a courageous structural reform, but the budget is disappointed, in accordance with the media portal.
Minister of Finance Pakistan Minister Usmail Usmail USD 47 billion federal budget for the next fiscal year has done very little to overcome the fundamental problems faced by the Islamic economy.
Because Pakistani traditional partners are shaken from saving the country from this large debt, the only hope is the revival of the expanded funding facilities from the IMF. However, the IMF expressed its dissatisfaction and unhappiness over the steps in the budget to meet its requirements to revive the funding of USD 6 billion.