Broke Pakistan waits for help from Gulf Nations to open doors for IMF agreement: Report

Amid the growing economic crisis, Pakistan is waiting for the gulf countries to bridge the financial gaps before International Monetary Fund approves the ninth report. The Pakistani economy is in complete shambles with rising inflation and depleting reserves. The Pakistani administration which is on a verge of collapse due to the economic and political crisis in the country is waiting desperately for an IMF bailout. According to Pakistani news outlet Geo TV, the International body is waiting for Islamabad to bridge the gap of $6 billion to prove its financial credibility. If the poverty-stricken country fails to do so, then it will slide into default making it difficult for IMF to provide sustainable monetary help to Pakistan. To bridge this financial gap, Pakistan is looking towards middle eastern countries like Saudi Arabia, UAE, and Qatar to help bridge the financial gap.

According to Geo TV, a Pakistani official who wished to remain anonymous talked about the country’s next plan of action in this regard. The official asserted that Islamabad has no options but to “wait and pray” for getting confirmation from the gulf countries. As per the report by the Pakistani news outlet, the economically ‘broke’ country is relying on the aforementioned countries since they reportedly gave out the commitment to help the nation in bridging the financial gap during the seventh and eighth reviews. The Gulf countries assured Islamabad that this help will include additional deposits and investments. However, it's been several months since the promise but the help didn’t materialise. “In such a scenario, the IMF has placed the ball in Pakistan’s court for securing 100 per cent commitment from bilateral partners before moving towards the signing of Staff Level Agreement (SLA),” the Pakistani official asserted on Thursday. 

Pakistan’s credibility in question

According to Geo TV, the IMF is testing the cash-crunched country’s credibility before it sits for a conversation over the staff-level agreement. If Pakistan fails to materialise this agreement, the country will slide into the default zone. The non-compliance from Pakistan's so-called “bilateral partners’, will make the International body wonder why Islamabad’s partners are not willing to help. This will make Pakistan’s case way worse than it already is. In the past, the Shehbaaz Sharif administration has struggled to strike a solid agreement with IMF. As of now, only China has helped the country by refinancing its commercial loans. However, the help from Beijing is not enough to prove its credibility.  

While Shariff looks for crumbles, Dar takes a whimsical stance

As the Pakistan economy continues to nose dive into oblivion, the Shahbaz Sharif administration is trying to look for crumbles. Earlier this week, it was reported that the struggling nation hiked its petrol prices to PKR 272 litre putting more pressure on the nation’s inflation-stricken population. The price hike came just a few days before Ramzan. The price of diesel was also raised by PKR 13 per litre and with these hikes, the Pak government managed to dampen the festive spirits of the people of Pakistan. The Shehbaz Sharif administration has been imposing cost-cutting measures to save whatever is left of the Pakistani economy. Last month, the Prime Minister imposed several austerity measures to chuck out the privileges of powerful politicians. 

However, in the midst of all the chaos, Finance Minister Ishaq Dar still managed to boast about the country’s so-called nuclear prowess. Speaking during a senate session the Finance Minister pledged that “no compromise” will be made in the country’s nuclear and missile programs despite the ongoing economic crisis. “Let me assure you that…nobody is going to compromise anything on the nuclear or the missile program of Pakistan — no way,” he asserted on Thursday. Hence, while the common citizens of Pakistan continue to get burdened by high prices, the country continues to boast about whatever little is still left.

Response to a query raised by an honourable Senator as to the causes of delay in signing off the Staff Level Agreement with IMF during Golden Jubilee Celebrations of the Senate of Pakistan👇 pic.twitter.com/BMECbZNXUs

— Ishaq Dar (@MIshaqDar50)