Authorization

The IMF has agreed to break Pakistans fall. Again

FAMILIARITY, THEYsay, breeds contempt. Few countries are as familiar with theIMFas Pakistan, which has previously obtained 21 loans from the fund, as many as Argentina. On May 12th this familiarity deepened further. The government, led by Imran Khan, a former cricketer who heads the Pakistan Tehreek-e-Insaf party, said it had reached a deal to borrow $6bn more over three years. The agreement now awaits formal approval from the funds bosses in Washington and the support of other international lenders, including the World Bank and Asian Development Bank.The loan will relieve Pakistans dollar shortage but do little to improve theIMFs standing in the country. In return for its money, the fund expects the government to raise tax revenues and utility prices, impose discipline on provincial spendingand let the currency fall, if need be. That will help narrow Pakistans wide trade and budget deficits. But it will also curb growth and increase inflation in the short term.
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«     2019    »
 12345
6789101112
13141516171819
20212223242526
2728293031