Shehbaz Sharif, the prime minister of Pakistan, claimed on Thursday that Imran Khan wanted Pakistan to experience a situation akin to that of Sri Lanka and that the decisions made by the previous administration under the leadership of the cricketer-turned-politician were to blame for the current economic crisis.
When the International Monetary Fund (IMF) decided to restart its Extended Fund Facility program in August, Pakistan could finally breathe a sigh of relief. As a result, the cash-strapped nation will now get the 7th and 8th tranches, totaling USD 1.17 billion.
Sharif, though, claimed that the country was having to pay a price for the chaos that Khan’s previous administration had brought about.
Sharif remarked during a news conference on Thursday that “they forged deals with the IMF on their own and afterwards ripped apart the criteria,” adding that “the former finance minister [Shaukat Tarin] created uncertainty.” The USD 6 billion agreement between Pakistan and the IMF was signed in July 2019, but it was abandoned in January 2020, temporarily resumed in March of last year, and then abandoned once more in June.
After overthrowing Khan’s administration in April of this year, the current administration started making an effort to restore the initiative.
The global lender also gave its approval for a loan size increase to around USD 7 billion and a loan extension through June 2023.
Sharif claimed that Khan wished for Pakistan to experience conditions similar to those in Sri Lanka.
Since its independence in 1948, Sri Lanka has experienced its worst economic crisis, which has caused a severe lack of basic necessities like food, medication, cooking gas, and gasoline throughout the nation.
The formidable Rajapaksa family was removed from power as a result of the unprecedented protests.
In September, the IMF stepped in to save the island nation from bankruptcy by agreeing to lend it a loan of around USD 2.9 billion over four years.
The 33 million people who have been displaced by the catastrophic floods and the 1,700+ people who have died have added to the strain on Pakistan’s already fragile economy.
The shaky economy of the nation is grappling with a balance of payments problem, a widening current account deficit, and inflation that has reached an all-time high of 27%.
The US announced a rollover deal to halt Pakistan’s debt payments totaling USD 132 million last month.
Given the escalating inflation and tightening global financial circumstances, New York-based rating agency S&P Global lowered Pakistan’s long-term ratings from “stable” to “negative” in August.