Pakistan's economy in a bad state..!? Will IMF help again..?

Sowmiya Sriram
Pakistan's economy in a bad state..!? Will IMF help again..?
Pakistan's economy is deteriorating day by day, the foreign exchange reserves continue to decline, the value of the Pakistani rupee declines, and inflation continues to increase without decreasing. The flash floods killed 1500 people and destroyed property worth billions of dollars. Do you know what the most important problem facing the country and government of pakistan is in this situation..?
Currently, pakistan is importing everything including crude oil, gas, and food products from abroad, but it does not have enough money. Similarly, it is running out of money to repay foreign debt securities. Before the floods in pakistan, the external financing requirement for the fiscal year 2022-23 was $33.5 billion, which has now increased. Meanwhile, Pakistan's trade deficit has also increased. In the current financial year alone, the rupee has depreciated by 20 percent in Pakistan.
The current flood damage is estimated at $30 billion. Due to this, excessive financial need for pakistan has arisen again. The main question now is how to deal with this. Again, the biggest question mark is whether the IMF will lend. The current benchmark interest rate in pakistan is 15 percent. Similarly, inflation is currently at 27 percent and there is a high chance of it falling to 20 percent by the end of the current fiscal.
Saudi Arabia, United Arab Emirates, and qatar have invested about 5 billion dollars in Pakistan. Although it is said by the government that it will improve the country's financial position and economy, there is a lack of funds for imports and bond payments. With a population of 220 million, pakistan is a 350 billion dollar economy. pakistan has been struggling to develop its economy for a long time and since 1958, IMF has saved pakistan about 20 times.
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