The Pakistan government is planning to take a loan of $ 4.9 billion (about Rs 41,000 crore) from international banks to save its sinking economy. This loan is being taken after the approval of a loan of $ 1 billion (? 12 thousand crores) from the International Monetary Fund (IMF) this month. This loan will be used to meet financial needs and increase foreign exchange reserves. Pakistan is in talks with four major international banks for the loan. Seeking loan from China’s bank Pakistan is talking to China’s ICBC Bank for $ 1.1 billion and Standard Chartered and Dubai Islamic Bank for $ 500 million each. Along with this, a guarantee is also being sought from the Asian Development Bank (ADB) for $ 500. Pakistan had set its economic growth target at 3.6% for the financial year 2024-25. But growth was achieved only at the rate of 2.68%. Preparation to take a loan of ?22,000 crores at 7-8% interest According to Pakistan’s ARY News, the government will take a short-term loan of 2.64 billion dollars (22,000 crores rupees). On which 7-8% annual interest will have to be paid. Apart from this, the government is planning to take a long-term loan of 2.27 billion dollars (18,900 crores rupees). Pakistan wants to increase its defense budget with the loan money. Earlier, the IMF has called the increased tension between India and Pakistan after the Pahalgam terrorist attack a threat to the bailout program. Along with this, 11 new conditions have been imposed on Pakistan for releasing the next installment of the loan. Now the total conditions on Pakistan for the loan have become 50. In the first review meeting of the bailout program, the IMF said that if the tension continues or increases further, then Pakistan’s defense budget may become a burden on the loan. It has already increased by 12% to 2.414 lakh crore Pakistani rupees. The Pakistani government is adamant on increasing it by 18% to 2.5 lakh crore Pakistani rupees. The IMF is considering this as a sign of misuse of funds. A loan of ?12 thousand crores was given on 9 May On 9 May the Executive Board of the International Monetary Fund (IMF) gave a new loan of 1.4 billion dollars (about ?12 thousand crores) to Pakistan under the Climate Resilience Loan Program. Along with this, the first review of the assistance of 7 billion dollars (about ?60 thousand crores) being received under the Extended Fund Facility (EFF) has also been approved. Due to this, Pakistan will get 1 billion dollars (about ?8,542 crores) of the next installment. With this review approval, a total of 2 billion dollars has been disbursed under the 7 billion dollar aid program. Pakistan will not get any immediate amount from the Resilience Loan. India said- Funding terrorism is dangerous In the IMF Executive Board meeting, India expressed concern over the funding being given to Pakistan and said that Pakistan uses it to spread cross-border terrorism. India opposed the voting on the review and did not participate in it. India issued a statement saying- Continuous sponsorship of cross-border terrorism sends a dangerous message to the global community. It puts the reputation of funding agencies and donors at risk and makes a mockery of global values. Our concern is that funds coming from an International Financial Institution like the IMF can be misused for military and state-sponsored cross-border terrorist purposes. India had said- IMF should look deep within itself before giving aid to Pakistan. A day before the IMF meeting, on Thursday (May 8), India’s Foreign Secretary Vikram Misri had said that before giving relief to Pakistan, the IMF board should look deep within itself and keep the facts in mind. In the last three decades, the IMF has given many big aids to Pakistan. None of the programs run by it have been able to reach successful results. What does the Executive Board of IMF do? IMF is an international organization, which helps countries financially, gives advice and keeps an eye on their economy. The core team of this organization is the Executive Board. This team sees to which country to give loan, which policies to implement and how to work on the world economy. It has 24 members who are called Executive Directors. Each member represents a country or a group of countries. India has a separate (independent) representative. Who presents its views on behalf of India in IMF. Also, it ensures that the policies of IMF do not harm the country. If the organization is going to give loan to any country, then give opinion on it on behalf of India. ————————— Also read this news related to the economic condition of Pakistan… Today’s Explainer: Pakistan has a debt of ?21.6 lakh crores, treasury empty; 11 thousand crores were to be received, India is going to stop that too. Every child of Pakistan is born with a debt of 86.5 thousand rupees on his head. Be it the import bill of oil and gas or the day-to-day expenses like salaries and subsidies, Pakistan’s entire economy is running on debt. But now India can vote against the loan that Pakistan gets from the IMF.
