MUNICH — Crisis hit Pakistan grapples with a major economic crisis, with the government resorting to desperate measures proposed by global lenders to revive the economy, while ordinary people bear the brunt of soaring prices. and the crowd may even skip meals.
As the situation worsens in her fifth-most populous country in the world, International Monetary Fund (IMF) Director-General Kristalina Georgieva said her “heart goes out to the people of Pakistan,” I shared my views. In her recent correspondence with the international press, she advised Islamabad to help the underprivileged and impose higher taxes on the rich.
Georgueva acknowledged that the country, with a population of over 220 million, has been hit by devastating floods. Financial institutions are asking the Pakistani government to take steps to function as a country and not put it in a “dangerous position” where it needs to restructure the country’s debt, she said. In more detail, Bulgarian economists say those who earn money must contribute to the country’s economy, and try to spread the pressure more fairly by handing out subsidies only to those who need them.
Pakistani and US-based lenders have reportedly reached an agreement on a financial framework in further steps to pay off tranches of stalled loans. The development comes as the coalition takes a key step proposed by global lenders when it introduces a tax to raise his Rs 170 billion.
With strict measures, the two sides are likely to reach a personnel-level agreement by the end of this month.Islamabad and US-based lenders held a virtual meeting on Thursday and were reported to have reached an agreement on negotiations. .
