Neighboring Pakistan is facing a severe economic crisis. The country’s coffers are almost empty. The soldiers could not even be provided with food. Salary has been withheld. Ministers have reduced their expenses.
They are looking for help wherever they can. They have asked for 100 crore US dollars from the IMF. The IMF team held talks with Pakistani government representatives till February 9. Negotiations have been stalled as the conditions for remittance of funds include hike in fuel prices and end of subsidy.
In this case, they asked for help from many countries like China, Uzbekistan and Iran. China Development Bank has granted Rs 5,600 crore in response to Pakistan’s request. If the talks with the IMF are successful, another Rs 8,000 crore will be available.
Pakistan’s foreign exchange reserves hit an all-time low of USD 2.9 billion a few weeks ago. Now it has increased to 400 crores. Compared to India, our foreign exchange reserves stood at Rs 5,610 crore as on Feb 17. 16 times more than Pakistan.
Thanks for the best friend
Pakistan Prime Minister Shahbaz Sharif thanked China as a best friend for providing financial support. Addressing a security meeting, he said, “We are waiting for an agreement with the IMF. At that time, our ally China helped us by saying that we are directly providing financial assistance to you. This favor should never be forgotten.” As noted.