Pakistan will become the fourth biggest International Monetary Fund (IMF) borrower within the global after receiving additional loans of $3 billion inside the next nine months below the standby association from the worldwide lender.
According to the lender’s records, as on March 31, 2023, Pakistan turned into ranked fifth inside the list of countries with the highest borrowing from the IMF.
However, after receiving any other $three billion within the next 9 months below the standby arrangement made days in the past, Pakistan will pass to the fourth place on this list.
Earlier, in phrases of loans from the IMF, Argentina ranked first with $forty six billion, Egypt stood at 2nd vicinity with $18 billion, Ukraine got here in 1/3 with $12.2 billion, Ecuador took the fourth spot with $8.2 billion, and Pakistan was at 5th role with $7.4 billion.
Now with loans really worth $10.Four billion, Pakistan will overtake Ecuador to emerge as the arena’s fourth-biggest IMF borrower.According to the IMF records as of March 31 this year, the global lender had issued loans of $a hundred and fifty five billion or one hundred fifteen.2 billion special drawing rights (SDRs) to stability the arena’s financial role and assist weak economies.
This dollar parent turned into calculated through the usage of IMF statistics on the cost of a SDR on March 31 this year that stood at $1.345.
The SDR is used as a unit of account via the global lender to evaluate the value of assist it extends to its member international locations.
Despite there being a complete of ninety three countries owing it cash, the IMF’s top 10 borrowers, consisting of Pakistan, still account for the lion’s proportion 71.7% of the exquisite stability of $155 billion.
Pakistan also holds the “name” of being the most important IMF borrower within the Asian region.
Other Asian countries that borrowed from the IMF, including Sri Lanka, Nepal, Uzbekistan, the Kyrgyz Republic, Armenia (West Asia) and Mongolia, are a ways behind Pakistan in phrases of taking loans from the global lender.
In August 2022, the IMF prolonged $1.1bn to Pakistan as a part of a $6.5bn programme agreed returned in July 2019.Because of the spillovers from the struggle in Ukraine and domestic demanding situations, Pakistan faces an acute balance of bills disaster.
Only 19 of the IMF’s member international locations have a debt of $1 billion or more.
The high rating within the list of IMF debtors calls for sustainable improvement for Pakistan by using pulling the united states of america out of the debt trap instead of trumpeting the approval of a loan from the global lender beneath the standby association.
An integrated plan must be observed to take Pakistan closer to this course.