Islamabad: Pakistan has finally managed to secure a 7.6 billion dollars loan from International Monetary Fund payable within next 5 years’ period. This was announced at a joint press conference by Governor State Bank Dr. Shamshad Akhtar and Finance Ministry’s Advisor Shaukat Tareen in Karachi this afternoon.
Shaukat Tareen said Pakistan will have to pay 3.51 and 4.51 percent interest rate within next five years. Shaukat Aarin said during President Asif Ali zardari’s meeting with Custodian of two Holly Mosques King Abdullah in New York issue of oil on deferred payment was discussed and if an arrangement was reached with the Kingdom Pakistan’s economic shape will be better and its rate of investment will enhance.
Pakistan needs funds urgently to augment its foreign currency reserves and avert a run on its currency and a default on its international debt. The country can ill afford an economic crisis as it faces surging violence blamed on Taliban and al-Qaida militants based in the northwest, close to the border with Afghanistan.
Opposition leaders bitterly criticized government’s action for going to IMF instead of improving its domestic position economically. If our rulers bring back their foreign accounts we do not need to go to IMF because the conditionalities Fund will impose on Pakistan will hurt poor people said Qazi Hussain Ahmad Amir of Jamat-e-Islami. Similar views were aired by Central Information Secretary of the Pakistan Muslim League (N) Ahsan Iqbal.
Pakistan has been facing economic crunch during recent past on various reasons. Main reason remained transfer of huge foreign exchange abroad by few influential politicians and industrialists. Secondly international hike in petroleum products and inappropriate policy on wheat’s export at cheap rates and later its import on much higher prices. Due to shortage of power manufacturing sector too suffered huge losses.