Can Pakistan Escape the IMF's Debt Trap?
Pakistan's Economic Woes: A Crisis in the Making Pakistan’s worsening economic situation is marred by critical factors including high inflation, depleting foreign exchange reserves and weakening currency. The economic crisis has adversely affected its human development indicators, thus ringing alarm bells for policymakers. Likewise, these indicators have completely shattered the confidence and trust of local and foreign investors who are no longer willing to put their stakes at risk in such a precarious time. IMF Bailout and Its Stringent Conditions The economic crisis can further deteriorate if the International Monetary Fund (IMF) bailout is not granted until a staff-level agreement is reached. The IMF continues to leverage its upper hand by imposing many harsh and strong conditions to successfully secure a bailout. In addition. It has also sought a guarantee from friendly countries as the final agreement is subject to financial assurances of $3 billion from Saudi Arabia ...