Pakistan proved to be 'failed' on the economic fronts
Wednesday - August 28, 2019 2:29 pm ,
Category : WTN SPECIAL
Suspicion on the bailout package of IMF to Pakistan
Pakistan constantly fails on IMF's strict terms
AUG 28 (WTN) - India's neighboring country Pakistan is notorious as a failed country in all over the world. Due to the promotion of terror and terrorist activities, today the Government of Pakistan is facing new crises on the economic front. Pakistan's economic condition is worsening due to increasing foreign debt, increasing inflation, unemployment and internal dissatisfaction.
Pakistan, on the verge of bankruptcy, appealed to the International Monetary Fund (IMF) for relief, after which the IMF agreed to give a bailout package to Pakistan with several stringent conditions. But there is skeptical about the bailout package to Pakistan from the IMF.
Due to financial mismanagement, Pakistan's budget deficit in this financial year is the highest in the last eight years. For this reason, it is being said that on the $ 6 billion relief package to Pakistan from the International Monetary Fund (IMF) questions have been raised. For your information, let us know that the IMF is going to review Pakistan's bailout package after a few days. Now that Pakistan's budget deficit has been the highest in the last eight years, Pakistan may have to face a lot of challenges to achieve the IMF approved bailout package.
The IMF has accepted a bailout package of $ 6 billion with very stringent conditions to set Pakistan's economy back on track. But it seems that the Imran Khan Government of Pakistan does not seem to live up to the IMF's terms. In fact, the budget deficit of Pakistan facing economic crisis has reached 8.9 per cent of the country's total GDP in this financial year, as compared to 6.6 per cent in the previous financial year.
According to the IMF's conditions for the bailout package, Pakistan's Imran Khan Government had to limit the budget deficit. Indeed, the increased budget deficit is a major reason for the financial failure of the Imran Khan Government, because the Imran Khan Government had set itself a target of limiting the budget deficit to 5.6 per cent of the GDP.
It is clear that the expenses of the Government of Pakistan are increasing continuously, due to which the budget deficit of Pakistan has increased so much after eight years. Due to financial mismanagement, the expenditure of the Government of Pakistan is constantly increasing, while its revenue income is continuously decreasing.
However, the Government of Pakistan has set a difficult target to increase Government revenue by 40 per cent in the financial year that started in July. But if the Government of Pakistan fails to achieve the revenue generation target, the Government of Pakistan will have to fight for a $ 6 billion bailout package from the IMF.
The Imran Khan Government has spent 20 per cent more this time than last year, but the revenue receipts have fallen by 6 per cent this year. The financial condition of Pakistan is that 80 per cent of the total Government Revenue is spent in the debt and defense budget itself.
According to the experts, the goal of increasing Government Revenue by 40 per cent is quite difficult. In such a situation, it is clear that the Government of Pakistan will not be able to meet the IMF's target of achieving revenue in the first quarter of the financial year commencing from July. This is because non-tax revenue has fallen by 98 per cent in the last quarter, resulting in a 20 per cent decrease in total revenue receipts.
In this situation, it may be that the Imran Khan Government of Pakistan presents a new mini budget to increase the tax. This is because, by doing so, the Government of Pakistan will try to prove in the IMF review that it is doing its best to achieve the revenue generation target.
To improve the economic condition of Pakistan which is going through a bad economic condition, Pakistan Prime Minister Imran Khan has made a pretense of efforts to reduce expenditure by stopping wasteful expenditure, and for this reason the Imran Khan Government is in full exercise to achieve the goal of achieving revenue has been proved to be a failure. Although, the Imran Khan Government had also increased the prices of petroleum products for the sake of revenue, the Government had to face the anger of the people in Pakistan.
In view of Pakistan's economic condition, the IMF has agreed to stricter conditions for a three-year bailout package to support and set Pakistan's economy back on track. But it does not seem that the Government of Pakistan is able to live up to the terms of the IMF. It can be said that the coming time will be very challenging for the Imran Khan Government of Pakistan on the economic front. But Pakistan can succeed on this front only when it stops giving shelter to terror and terrorists.
AUG 28 (WTN) - India's neighboring country Pakistan is notorious as a failed country in all over the world. Due to the promotion of terror and terrorist activities, today the Government of Pakistan is facing new crises on the economic front. Pakistan's economic condition is worsening due to increasing foreign debt, increasing inflation, unemployment and internal dissatisfaction.
Pakistan, on the verge of bankruptcy, appealed to the International Monetary Fund (IMF) for relief, after which the IMF agreed to give a bailout package to Pakistan with several stringent conditions. But there is skeptical about the bailout package to Pakistan from the IMF.
Due to financial mismanagement, Pakistan's budget deficit in this financial year is the highest in the last eight years. For this reason, it is being said that on the $ 6 billion relief package to Pakistan from the International Monetary Fund (IMF) questions have been raised. For your information, let us know that the IMF is going to review Pakistan's bailout package after a few days. Now that Pakistan's budget deficit has been the highest in the last eight years, Pakistan may have to face a lot of challenges to achieve the IMF approved bailout package.
The IMF has accepted a bailout package of $ 6 billion with very stringent conditions to set Pakistan's economy back on track. But it seems that the Imran Khan Government of Pakistan does not seem to live up to the IMF's terms. In fact, the budget deficit of Pakistan facing economic crisis has reached 8.9 per cent of the country's total GDP in this financial year, as compared to 6.6 per cent in the previous financial year.
According to the IMF's conditions for the bailout package, Pakistan's Imran Khan Government had to limit the budget deficit. Indeed, the increased budget deficit is a major reason for the financial failure of the Imran Khan Government, because the Imran Khan Government had set itself a target of limiting the budget deficit to 5.6 per cent of the GDP.
It is clear that the expenses of the Government of Pakistan are increasing continuously, due to which the budget deficit of Pakistan has increased so much after eight years. Due to financial mismanagement, the expenditure of the Government of Pakistan is constantly increasing, while its revenue income is continuously decreasing.
However, the Government of Pakistan has set a difficult target to increase Government revenue by 40 per cent in the financial year that started in July. But if the Government of Pakistan fails to achieve the revenue generation target, the Government of Pakistan will have to fight for a $ 6 billion bailout package from the IMF.
The Imran Khan Government has spent 20 per cent more this time than last year, but the revenue receipts have fallen by 6 per cent this year. The financial condition of Pakistan is that 80 per cent of the total Government Revenue is spent in the debt and defense budget itself.
According to the experts, the goal of increasing Government Revenue by 40 per cent is quite difficult. In such a situation, it is clear that the Government of Pakistan will not be able to meet the IMF's target of achieving revenue in the first quarter of the financial year commencing from July. This is because non-tax revenue has fallen by 98 per cent in the last quarter, resulting in a 20 per cent decrease in total revenue receipts.
In this situation, it may be that the Imran Khan Government of Pakistan presents a new mini budget to increase the tax. This is because, by doing so, the Government of Pakistan will try to prove in the IMF review that it is doing its best to achieve the revenue generation target.
To improve the economic condition of Pakistan which is going through a bad economic condition, Pakistan Prime Minister Imran Khan has made a pretense of efforts to reduce expenditure by stopping wasteful expenditure, and for this reason the Imran Khan Government is in full exercise to achieve the goal of achieving revenue has been proved to be a failure. Although, the Imran Khan Government had also increased the prices of petroleum products for the sake of revenue, the Government had to face the anger of the people in Pakistan.
In view of Pakistan's economic condition, the IMF has agreed to stricter conditions for a three-year bailout package to support and set Pakistan's economy back on track. But it does not seem that the Government of Pakistan is able to live up to the terms of the IMF. It can be said that the coming time will be very challenging for the Imran Khan Government of Pakistan on the economic front. But Pakistan can succeed on this front only when it stops giving shelter to terror and terrorists.
