A report by the Policy Research Group has provided that the Asian nation of Pakistan will witness a full-fledged financial crisis by this financial year if the IMF or the International Monetary Fund program is not revived by the end of January or earlier February.
Pakistan according to the report has to pay back about 8.638 billion US Dollars of the foreign loans that it has borrowed.
The report has provided that if the IMF or the International Monetary Fund program is not revived by the end of January or earlier February then the crisis will knock the doors of Pakistan whose economy is already struggling.
The country is facing an increasing Current Account Deficit and its foreign exchange reserves are also decreasing despite receiving inflow cash from Saudi Arabia.
The repayment of foreign loans has gone up by 399 percent in the last four years in the rupee term. It stood at Rs 286.6 billion in 2017-18 and now it is estimated at Rs 1,427.5 billion. In dollar terms, Pakistan had to repay foreign loans, both the principal and mark-up, to the tune of over 12.4 billion USD, per it.
Pakistan is currently facing financial challenges as the country’s trade deficit is surging high. Inflation is also on the rise and the Government had to bring the mini-budget to hike taxes to meet certain demands of the IMF.