Managing the economy has become a big challenge for Finance Minister Ishaq Dar, while the claims of the federal government itself and the reaction of the International Monetary Fund have made the situation even worse.
For example, Pakistani media published the news on behalf of Prime Minister Shehbaz Sharif that the IMF contacted the government and they are determined to implement the terms of the program, but the International Monetary Fund clarified that the call was made by the Prime Minister himself. It was done at his request [Shehbaz Sharif].
Apparently, it doesn’t matter whether the call is made by the IMF or the Prime Minister, but such small misunderstandings can trigger a new crisis in the economic situation. On the other hand, Ishaq Dar is continuing with his old policies and artificial efforts to control the dollar.
Stakeholders began to pressure the federal government to abandon its attempts to artificially control the exchange rate, leading to the emergence of 3 types of exchange rates we know as interbank, open market, and gray market. Due to this economic instability is feared to increase further.
Economists say that the IMF delegation may not visit Pakistan as the preconditions for the resumption of negotiations are known to both parties. Online negotiations will also prove futile, the government will have to ensure the implementation of International Monetary Fund conditions.
Recently Finance Minister Ishaq Dar said that foreign exchange reserves are not $4 but $10 billion. The loan due is being repaid on time. 6 billion dollars of commercial banks also belong to the state of Pakistan. The IMF delegation will visit Pakistan soon.
Experts say that the economic activities across the country are severely affected due to the currency crisis, while Pakistan will try to get one and a half to 2 billion dollars of foreign aid at the Geneva conference today, which does not have much hope of success. Hopes are also being pinned on Saudi Arabia and China.
There is a need for the government to continue its efforts to complete the next economic review from the IMF. Economic review talks are expected to make positive progress next week and Pakistan expects to receive around $1 billion from the IMF if the review is completed.
Undoubtedly, Pakistan has to pay 8.5 billion dollars in debt in the next 3 months, from January to March. However, with the completion of the IMF program, the chances of receiving aid from friendly countries will also increase.
