Pakistan threatens to sink further as IMF rejects country's 'unrealistic' debt management plan

Citing local media, ANI reported that the International Monetary Fund's verification mission had rejected Pakistan's request. and called on Shehbaz Sharif's government to increase electricity tariffs and limit additional subsidies to 335 billion Pakistani rupees (PKR) for the current fiscal year. On Monday , a delegation from the International Monetary Fund's Review Mission, led by Nathen Porter, landed in Islamabad to review the deplorable conditions of Pakistan's economy and begin negotiations on a bailout.

According to ANI, the delegation asked the Pakistani government to increase the electricity tariff by PKR 11-12.50 per unit.

According to the Lahore School of Economics in Pakistan, a circular debt situation occurs when a company has problems with its cash flow and therefore withholds payments to its suppliers and creditors. Inflation rose 27.55%, the highest in 48 years.

According to ANI, the IMF called the proposed plan "unrealistic" and said it was based on "certain flawed assumptions". According to reports, the Pakistani government will also have to change its policy. limit losses in the electricity sector. Meanwhile, the IMF and Pakistan's Defense Ministry will fill the budget gaps and more; The additional tax measures will be completed shortly. According to ANI, the Government of Pakistan shared the CDMP with the International Organization and requested an increase in Circular Debt of PKR 952 billion.In 2019, former Pakistani Prime Minister Imran Khan negotiated a multi-billion dollar loan package with the IMF. But even these negotiations proved fruitless and eventually stalled. water while they struggle to stabilize their economy.