[ad_1]
ISLAMABAD: Indebted Pakistan will become the fourth largest country borrowed from the International Monetary Fund in the world after receiving a new $3 billion loan in the next nine months under the standby arrangement reached with the global lender.
The Express Tribune, quoting the Express Tribune, reported that Pakistan, which is facing the worst economic crisis since its independence from Britain in 1947, was ranked fifth on March 31, 2023 in the list of countries with the highest borrowing from the International Monetary Fund. Global Lender Data.
However, Pakistan will move to fourth place on this list when it receives another $3 billion in the next nine months under a standby arrangement struck with the Washington-based global lender on Thursday.
The deal, which still needs IMF board approval, comes after an eight-month delay.
Earlier, in terms of IMF loans, Argentina ranked first with $46 billion, Egypt ranked second with $18 billion, Ukraine ranked third with $12.2 billion, Ecuador ranked fourth with $8.2 billion, and Pakistan ranked third. Fifth. The center is worth $7.4 billion.
With loans from the World Bank worth $10.4 billion, Pakistan will overtake Ecuador to become the fourth largest borrower from the International Monetary Fund in the world.
Cash-strapped Pakistan is facing an acute balance of payments crisis due to the fallout from the war in Ukraine and domestic challenges.
Although there are 93 countries that owe him money, the 10 largest debtors to the IMF, including Pakistan, still account for the lion’s share of 71.7 percent of the outstanding balance of US$155 billion.
Pakistan also holds the “title” of being the largest borrower from the IMF in the Asian region, according to the report.
Other Asian countries that have borrowed from the IMF, including Sri Lanka, Nepal, Uzbekistan, Kyrgyz Republic, Armenia (West Asia) and Mongolia, lag far behind Pakistan in terms of getting loans from the global lender.
According to IMF statistics, as of March 31 this year, the global lender has issued $155 billion in loans or $115.2 billion in special drawing rights (SDRs) to balance the global financial situation and support weak economies.
This dollar figure was calculated using IMF data on the value of SDRs as of March 31 of this year, which amounted to $1,345. The global lender uses the SDR as a unit of account to assess the value of the support it provides to its member countries.
In August 2022, the International Monetary Fund provided $1.1 billion to Pakistan as part of a $6.5 billion program approved in July 2019.
Only 19 IMF member countries have debts of $1 billion or more, the report said.
The high ranking of IMF borrowers calls for sustainable development for Pakistan by pulling the country out of its debt trap rather than mouthing approval for a loan from the global lender under a standby arrangement.
The report stated that an integrated plan must be followed to guide Pakistan in this direction.
The US$3 billion financing under the Standby Credit Agreement, spread over nine months, is higher than expected for Pakistan. The country has been awaiting the release of the remaining $2.5 billion of the $6.5 billion bailout package agreed in 2019, which ended on June 30.
Pakistan’s economy has been in a free-fall mode for the past several years, causing untold stress on the poor masses in the form of uncontrolled inflation, making it almost impossible for a large number of people to make ends meet.
It has faced many challenges lately, including devastating floods last year and soaring commodity prices in the aftermath of the war in Ukraine.
More than 1,500 people were killed last year during floods in Pakistan that destroyed millions of homes, swept away vast tracts of farmland and caused billions of dollars in economic losses.
The Express Tribune, quoting the Express Tribune, reported that Pakistan, which is facing the worst economic crisis since its independence from Britain in 1947, was ranked fifth on March 31, 2023 in the list of countries with the highest borrowing from the International Monetary Fund. Global Lender Data.
However, Pakistan will move to fourth place on this list when it receives another $3 billion in the next nine months under a standby arrangement struck with the Washington-based global lender on Thursday.
The deal, which still needs IMF board approval, comes after an eight-month delay.
Earlier, in terms of IMF loans, Argentina ranked first with $46 billion, Egypt ranked second with $18 billion, Ukraine ranked third with $12.2 billion, Ecuador ranked fourth with $8.2 billion, and Pakistan ranked third. Fifth. The center is worth $7.4 billion.
With loans from the World Bank worth $10.4 billion, Pakistan will overtake Ecuador to become the fourth largest borrower from the International Monetary Fund in the world.
Cash-strapped Pakistan is facing an acute balance of payments crisis due to the fallout from the war in Ukraine and domestic challenges.
Although there are 93 countries that owe him money, the 10 largest debtors to the IMF, including Pakistan, still account for the lion’s share of 71.7 percent of the outstanding balance of US$155 billion.
Pakistan also holds the “title” of being the largest borrower from the IMF in the Asian region, according to the report.
Other Asian countries that have borrowed from the IMF, including Sri Lanka, Nepal, Uzbekistan, Kyrgyz Republic, Armenia (West Asia) and Mongolia, lag far behind Pakistan in terms of getting loans from the global lender.
According to IMF statistics, as of March 31 this year, the global lender has issued $155 billion in loans or $115.2 billion in special drawing rights (SDRs) to balance the global financial situation and support weak economies.
This dollar figure was calculated using IMF data on the value of SDRs as of March 31 of this year, which amounted to $1,345. The global lender uses the SDR as a unit of account to assess the value of the support it provides to its member countries.
In August 2022, the International Monetary Fund provided $1.1 billion to Pakistan as part of a $6.5 billion program approved in July 2019.
Only 19 IMF member countries have debts of $1 billion or more, the report said.
The high ranking of IMF borrowers calls for sustainable development for Pakistan by pulling the country out of its debt trap rather than mouthing approval for a loan from the global lender under a standby arrangement.
The report stated that an integrated plan must be followed to guide Pakistan in this direction.
The US$3 billion financing under the Standby Credit Agreement, spread over nine months, is higher than expected for Pakistan. The country has been awaiting the release of the remaining $2.5 billion of the $6.5 billion bailout package agreed in 2019, which ended on June 30.
Pakistan’s economy has been in a free-fall mode for the past several years, causing untold stress on the poor masses in the form of uncontrolled inflation, making it almost impossible for a large number of people to make ends meet.
It has faced many challenges lately, including devastating floods last year and soaring commodity prices in the aftermath of the war in Ukraine.
More than 1,500 people were killed last year during floods in Pakistan that destroyed millions of homes, swept away vast tracts of farmland and caused billions of dollars in economic losses.
[ad_2]
