No reprieve for Pakistan’s Economy as Dependence on Loans Keeps Growing

 

Pakistan’s economic situation was in doldrums even before Covid19 struck.  Since 2018, the country has taken loans from IMF, World Bank, and from friendly countries like Saudi Arabia, UAE and Qatar. However, in the last few months, there has been an uptick in loans: first, from IMF through the Rapid Financial Instrument and now recently from the China-led and funded Asian Infrastructure Investment Bank (AIIB).

This week, AIIB’s Board of Directors approved a loan of $250 million to help Pakistan strengthen its response to the social and economic fallout from the Covid-19 pandemic. The ostensible aim of the loan is to “bolster the government’s Resilient Institutions for Sustainable Economy (RISE) Programme, which aims to stimulate investment in human capital, expand social safety nets, improve the country’s emergency health infrastructure and foster economic growth. The RISE Programme is a part of set of measures Pakistan has undertaken towards recovery from the impact of the pandemic. The pandemic has rapidly evolved in Pakistan and now threatens to undo many of the hard-won gains made in reducing poverty over the past two decades. Our immediate support is critical and will contribute to the government’s efforts to mitigate pandemic-related shocks, so that the country may continue on its path to sustainable development.”

Pakistan is already a highly indebted, thanks to the loans it has taken from international organizations, friendly countries in the Gulf and, the $62 billion China Pakistan Economic Corridor (CPEC). International organizations like the IMF have routinely warned about Pakistan’s debt-trap but it appears that the country’s leadership does not really care about the future of its people.

Author: Syed Bokhari

Latest articles

Lack of Testing Creates Illusion that Pakistan has Less of a Corona Virus Problem

With over 300,000 confirmed cases, and the Covid19 pandemic still with us, health care experts agree that the only choice before the country is...

Is Pakistan’s Opposition Finally Standing up to the Military Establishment?

For far too long, Pakistani politicians have traipsed around the issue of the military’s meddling in politics. The Multi-Party Conference held on Sunday, September...

Rape Culture, Ignored and Condoned by Establishment and its Henchmen

Pakistan was the first Muslim country to have a woman as a Prime Minister and yet it is one of the most unsafe places...

Now, Pakistan’s Shia Muslims are Under Attack

Suppression of religious freedom and targeting of religious and ethnic minorities is old in Pakistan. The country has a long history of sectarianism with...

Related articles

Leave a reply

Please enter your comment!
Please enter your name here

Author: Syed Bokhari