Pakistan: Pakistan’s foreign exchange reserves have remained less than three billion dollars. To avoid financial collapse, it is in dire need of financial help and a relief package from the IMF at this time.
Pakistan Economy Crisis: Pakistan, which is suffering from economic crisis, is now preparing to impose new taxes on its people to satisfy the International Monetary Fund (IMF). In fact, to meet the conditions of the IMF, Pakistan has approved to impose a tax of Rs 170 billion on its people. Due to this new tax, the government of Pakistan is expected to get an additional revenue of Rs 170 billion.
The step taken by the Government of Pakistan is being seen as a condition placed by the IMF. In fact, the IMF had asked the Pakistan government to take some tough steps before releasing a new installment of $ 1.1 billion under the relief package to Pakistan.
It is known that an IMF delegation had a ten-day meeting with Pakistan officials regarding the release of the installment, but the delegation returned to Washington on Thursday (February 9) without signing the staff-level agreement. Finance Minister Ishaq Dar, the head of the Pakistani side in the talks, told that some concrete steps are needed to speed up the talks with the IMF.
Explain that both the sides will resume talks in a virtual manner from Monday (February 13). Significantly, Ishaq Dar, while chairing the meeting of the Economic Coordination Committee (ECC) of the Cabinet, decided to increase the electricity rates. The ECC decided in this meeting that the electricity tariff subsidy received on the Kisan package would be discontinued.
Along with this, approval has also been granted to discontinue power tariff subsidy to zero-rated industries to meet the IMF’s advance conditions. The decisions taken in the meeting of the committee will be effective from March 1. Let us tell you that Pakistan is facing cash crunch these days. Pakistan’s foreign exchange reserves have remained less than three billion dollars. To avoid financial collapse, it is in dire need of financial help and a relief package from the IMF at this time.