The executive board of the International Monetary Fund (IMF) will meet tomorrow to discuss the issue of disbursement of the much needed bailout package to Pakistan. The delay in the disbursement has already escalated problems for the Shehbaz Sharif government amid surging inflation and depleting foreign exchange reserves– currently below the $8 billion level.

A few other countries including Saudi Arabia and Qatar have also come forth to help the cash strapped country.

Since the Covid pandemic, Pakistan’s economic crisis has been deepening. The country has been largely dependent on foreign loans and imports to run its economy. The total external debt of Pakistan which include money it owes to other countries and other multilateral agencies — is more than 80 per cent of its GDP. The heavy floods in Pakistan have also caused severe damages may add to cost the exchequer another $4 billion in the current financial year.

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The steady increase of fuel prices, as prescribed by the IMF, has added to the inflationary pressure.

Pakistan’s weekly inflation rate increased by 1.83 per cent to reach a record high level of 44.58 per cent. According to the Express Tribune, of the total 51 essential commodities, prices of 23 increased last week, while that of only seven decreased and 21 remained unchanged.