IMF loan not to settle economic risks

Business News English

Islamabad, November 29, 2021 (PPI-OT):Former President of Islamabad Chamber of Commerce and Industry (ICCI) Dr. Shahid Rasheed Butt on Sunday said an agreement with the IMF would not eliminate the economic risks but would reduce them. Pakistan will have to borrow at least ten billion dollars in a few months from various sources to avoid bankruptcy, he said.

Shahid Rasheed Butt said that the economy would not have been in such dire straits if the Finance Minister Dr. Abdul Hafeez Sheikh had not been ousted suddenly and unceremoniously in March. High hopes were pinned on those who followed Mr. Sheikh but they damaged the masses, economy and local currency beyond expectations by pursuing ruinous economic policies.

In April, IMF conditions were avoided on assumption that the new economic team will deliver which was a disastrous misreading that resulted in more harsh conditions by the lender the consequences of which are being borne by the poor, he said. He said that the central bank’s soft policies, amnesty schemes and hefty packages to different sectors have benefited investors but damaged masses and crippled the economy.

Mr. Butt noted that at present, the prices of oil, gas, edible oil, grains and other commodities are falling in the international market while transportation costs are also coming down but people should not expect any relief during the ongoing winter.

He said that unabated imports and other factors have reduced foreign exchange reserves by 3.8 billion in the last ten weeks, while the lifting of travel restrictions was likely to reduce remittances, which would result in more loans. Bangladesh is spending 20% of its tax revenue on debt repayment while Pakistan is spending 85% of its tax revenue on such repayments that is set to increase soon.

For more information, contact:
Dr. Shahid Rasheed Butt
Consul General Ghana
Former President ICCI
Former Patron ICST
Tel: +92-333-5132199, +92-51-2822571