Economists are divided over the IMF loan to Pakistan

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There are different opinions prevailing in Pakistan about the possible IMF loan to Pakistan.

One group has an opinion about IMF loan to Pakistan that the government should move towards program as soon as possible. They believe that the government is already delayed the IMF bailout package, that is making the management of economy tough in the coming months. They delayed the needed reforms and should approach the lender of last resort to increase the foreign exchange reserves of Pakistan.

On the other side, the other group has an opinion that the government should delay the IMF loan as much as possible and will ask for aid from the friendly countries.

The group demanding for the IMF loan is of the view that Pakistan is facing an acute balance of payments crisis since foreign exchange cover is hovering around 2 months of imports at the moment.

The other group justifies the decision taken by PTI govt to delay the IMF loan as they are continuously knocking at the doors of friendly countries. They also asked for a slow adjustment of the fiscal deficit keeping in view the ground realities.

In short, we can say that both groups are almost agree on a point that the IMF loan is necessary.

On the other side, the government’s decision about IMF loan will also create significant impact on volatile oil prices and the fluctuating gas prices.

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