IMF Warns Pakistan
Recently elected government is facing a lot of economic problems. Pakistan has taken a decision to approach IMF for a bailout. However, everyone is familiar with the Pakistan economic condition. According to the current government, the former government led the economic condition difficult. Due to this, Pakistan has decided to reach IMF for prescription.
The IMF’s Maurice Obstfeld warns Pakistan. They warned for underestimating china’s involvement since China is involved in many building projects in Pakistan.
Maurice Obstfeld on annual meeting told, involvement with China could be both ”benefits or risks”. In addition to his prescription he warned on taking less debt for building infrastructures. The projects must be sound and should not lead to financial instability.
However Pakistani government have reconsidered the Pak-China corridor projects, the projects that they have signed up for US $62 billion.
The prompt debt condition of Pakistan with China is concerning US Secretary State. They are watching to find if they are returning loans to China from IMF funds.
Also warned Pakistan that growth will be slow and the inflation will rise. Pakistan Finance minister Asad Umar is looking over their prescription. They have strong commitment and plans to restore the instability.