Cash-strapped Pakistan, facing economic & food crisis, hopes for early settlement with IMF

Amid the acute economic, food and power crisis in Pakistan, Prime Minister Shehbaz Sharif expressed hope for an early agreement with the International Monetary Fund (IMF) to unlock foreign loans. This development comes a day after IMF announced its plan to send a staff mission to the destitute nation.

"I fully expect that an agreement with the IMF will be signed this month and we will get out of these difficulties. And multilateral institutions will also support us," Sharif said during the inaugural ceremony of the Green Line Train service in Islamabad.

Sharif's remarks came as the country's foreign reserves plunged to USD 3.7 billion, which experts consider a critical level.

The global lender has announced that it will send its staff mission to the cash-strapped nation on January 31 for discussions on the ninth quarterly review of a funding program pending for almost four months. If the review is successful, USD 1.2 billion would be released.

Finance Minister Ishaq Dar said that it would a "tough task" to bring back development and economic growth but stated that the Pakistan Muslim League (N) would achieve it under the premier’s guidance. He also blamed the former government of Imran Khan for the economic disaster. 

"This quagmire is not the result of this government’s eight months but the five years of the previous government," Dar told mediapersons.

"We will try our best, under PM Shehbaz's guidance, to bring as many improvements as we can before the upcoming general elections. You can see history to see who brings development and economic growth. We will get back on track," he said, adding that the task was tough and the distance long.

Pakistani Rupee sees highest 1-day fall in 20 years

The Pakistani Rupee reported its biggest one-day crash in more than two decades on Thursday. The rupee fell 9.6 percent against the dollar on January 25.

Asim Ahmed, Chairman of the Federal Board of Revenue, turned the present financial situation as 'critical'. "Economic situation [in the country] is critical and there is a shortfall in revenue. We will soon overcome the tax gap," he said.