Interestingly, Dar still decides Pakistan’s economic policy despite Muhammad Aurangzeb being the country’s current finance minister. Notably, the new loan is the 24th IMF loan for Pakistan, with the country already owing the international financial body USD 7 billion. [5] This would further dent the primary budget surplus goal of the IMF deal. Islamabad will now be deliberating on how to repay external debt amidst reports of the failure of the IMF deal. [6]In addition to the possible failure of the IMF deal, Pakistan’s smaller textile companies are curtailing production or selling assets to pay debts after high energy and borrowing costs have hurt businesses.

Source: The Express Tribune November 05, 2024 13:35 UTC