IMF approves $1bn to Pakistan but will Imran Khan be able to bring in more reform measures amid rising inflation
Much to the relief of Pakistan Prime Minister Imran Khan, the International Monetary Fund (IMF) approved disbursement of $1 billion as part of its $6 billion loan programme under the Extended Fund Facility (EEF) that essentially facilitates assistance to countries with serious payment imbalances caused due to structural impediments or slow growth. Despite this, the road ahead for Khan may be even tougher, as he is expected to implement more structural reform measures.
At a time when inflation is at a two-year high of 13 per cent -- in January inflation touched 13 per cent up from 12.3 per cent in December, announcing such measures would surely not be easy. Khan has already come under severe criticism for “surrendering” to the IMF.
In April last year, the inflation rate in Pakistan touched 11.1 per cent. Though it eased a little after that, since August, prices have been rising again, impacting the poorer section the most. “The country’s economic situation has come as a blow for Imran Khan, whose promise, when he assumed power, was to fix it. The economy has gone southward,” an expatriate said.
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