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Showing posts from July 18, 2019

The IMF Takeover of Pakistan

A Pakistani walks past a shop which is closed due to strike in Peshawar, Pakistan, July 13, 2019.Image Credit: AP Photo/Mohammad Sajjad
Many Pakistanis see the terms of the $6 billion bailout package as a hostile takeover of their economy and government.By Kunwar Khuldune ShahidJuly 18, 2019On July 3, the International Monetary Fund approved a $6 billion bailout package to help “return sustainable growth” to Pakistan’s economy. Throughout the deal spanning 39 months, the IMF will review Pakistan’s progress on a quarterly basis. As part of the agreement, $1 billion has been released to Pakistan.This is the 13th IMF bailout for Pakistan, with the Fund looking toward the correction of “structural imbalances” in the country. In this regard, the IMF had announced in the negotiations over the past couple of months that Islamabad would have to increase taxation in order to repay external debt and increase foreign exchange reserves.Details of the agreement reveal the targets that have been set…