Bangladesh got more than 4 billion dollars in loan last week, while this enforced government and its enforcers are still in a fix to get a small portion.
Inflation in Pakistan is likely to reach an all-time high as the government withdraws measures to revive the IMF program
The Pakistani government’s move to raise oil prices and devalue its currency is expected to push inflation above 30 percent ahead of the International Monetary Fund (IMF) meeting on Tuesday. Economists and experts say that the increase in the price of electricity and gas is imminent.
An International Monetary Fund delegation is scheduled to visit Islamabad from January 31 to February 9, 2023 to discuss the ninth revision of the $7 billion loan program signed in 2019. Improving financial conditions with permanent measures while helping those affected by last year’s devastating floods.
According to Esther Perez Ruiz, Pakistan’s representative to the IMF, the IMF mission will also revive the power sector, reverse the accumulation of circular debt, restore the proper functioning of the foreign exchange market, and reduce foreign exchange shortages. it destroys. Cancellation
Dr Waqar Ahmed, executive director of the Sustainable Development Policy Institute (SDPI), said: “Pakistan has removed exchange rate caps and increased the price of petroleum products in line with the demand of the International Monetary Fund.” He told Arab News.
Most analysts agreed that the next step would be to increase electricity and gas tariffs, and another increase in oil prices would take place in February. They said the overall effect of these measures would be inflationary pressure.
“Inflation is expected to increase significantly over the next two months due to higher oil prices. We expect inflation to rise above 25% in the next quarter, not below this level,” Ahmed says.
Tahir Abbas, Head of Aref Habib Research Department with Limited Liability, agrees by stating that the impact of current and future measures to obtain the approval of the ninth review of the International Monetary Fund will be more than 30% on inflation.
