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Updated January 12th, 2022 at 18:49 IST

On brink of bankruptcy, Imran Khan lies 'Pakistan's economic condition better than India'

Imran Khan asserted that inflation is not a problem that only Pakistan is dealing with and added that its gas rates are still cheaper than other countries.

Reported by: Ananya Varma
Pakistan
Image: PTI | Image:self
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Crippling under its mounting debts and rising inflation, Pakistan Prime Minister Imran Khan on Wednesday claimed that his country's economic condition was still 'better than India'. Addressing the inaugural session of the International Chambers Summit 2022 in Islamabad, PM Imran Khan asserted that inflation is not a problem that only Pakistan is dealing with and added that its gas rates are still cheaper than countries like the US, UK, and India. 

"Inflation is not a problem of only Pakistan, the entire world is suffering from it. Joe Biden is being attacked by Donald Trump on rising prices, Boris Johnson is being attacked in the parliament. His own MPs are saying gas rates have spiked. What can Pakistan do in this matter? Pakistan is still cheaper than most countries. Look at our prices of petrol and diesel and compare it with India and Bangladesh, we are the cheapest country," he said at the business leaders' meet.

Forced To Take Tough Decisions Due To IMF's Pressure: Pakistan Finance Min

PM Imran Khan's statement comes at a time when Pakistan is staring at bankruptcy with its own Federal Minister of Finance Shaukat Tarin admitting that the country was being forced to take several 'tough decisions' due to the pressure of the International Monetary Fund (IMF). The debt-ridden country is looking to revive the crucial USD 6 billion Extended Fund Facility (EFF), which has forced the Imran Khan-led government to implement a new raft of austerity measures on its population. 

Despite its attempts, Pakistan's consideration of the completion of the sixth review and release of a USD 1 billion tranche was deferred by the IMF on January 10. After receiving a request from the Pakistan government, the IMF's Executive Board decided to postpone the meeting. 

Tougher days ahead for Pakistan

Lately, Pakistan has been witnessing currency devaluation, high inflation, a spike in its petrol rates, and a current account deficit compounding its economic problems. Defending the spike in prices, Shaukat Tarin said that the hike was a result of the IMF's suggestion to increase the petroleum development levy (PDL). Pakistan's Opposition has alleged that the government was turning the State Bank of Pakistan into the bank of IMF. 

Apart from international organizations, Pakistan has also been regularly borrowing from the United Arab Emirates (UAE) which last month laid down stringent clauses for the Imran Khan-led nation in exchange for its $4.2 billion loan package. The last time it borrowed from the Arab nation, it was forced to repay the loan by taking a loan of the same amount from China.

In turn, Pakistan has had to pay over Rs 26 billion in interest cost to China to repay a maturing debt in the fiscal year 2020-21. Reportedly, the cash-strapped nation is also facing scores of "hidden debts" totaling $385 billion due to China's Belt and Road Initiative (BRI) project. 

Image: PTI

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Published January 12th, 2022 at 18:49 IST

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