The Pakistani government and the International Monetary Fund (IMF) are in a deadlock over an unfinished loan program that is required to address the ongoing economic crisis in the country. The government has been attempting to fulfill all of the demands, but the IMF has insisted on four items that have made it difficult for the authorities to secure a $1.1bn bailout package. The demands include an early hike in the central bank’s interest rate, exchange rate adjustments, written assurances for external financing, and a financing cost surcharge on electricity consumers. The government has agreed to all demands but has expressed its concerns that the policies being imposed would negatively impact the poor. Human Rights Watch has suggested that Pakistan and the IMF should address the crisis in a way that protects low-income earners. Millions of people have been affected, with weekly inflation surging above 40% and monthly inflation jumping to 31.6% in February year-on-year. The country is facing one of its worst-ever economic crises, jeopardizing millions’ rights to health, food, and an adequate standard of living.
Today: December 2, 2023