On brink of bankruptcy, Imran Khan lies 'Pakistan's economic condition better than India'

Crippling under its mounting debts and rising inflation, Pakistan Prime Minister Imran Khan on Wednesday claimed that his country's ecomic condition was still 'better than India'. Addressing inaugural session of International Chambers Summit 2022 in Islamabad, PM Imran Khan asserted that inflation is t a problem that only Pakistan is dealing with and added that its gas rates are still cheaper than countries like US, UK, and India. 

"Inflation is t a problem of only Pakistan, entire world is suffering from it. Joe Biden is being attacked by Donald Trump on rising prices, Boris Johnson is being attacked in parliament. His own MPs are saying gas rates have spiked. What can Pakistan do in this matter? Pakistan is still cheaper than most countries. Look at our prices of petrol and diesel and compare it with India and Bangladesh, we are cheapest country," he said at business leaders' meet.

Forced To Take Tough Decisions Due To IMF's Pressure: Pakistan Finance Min

PM Imran Khan's statement comes at a time when Pakistan is staring at bankruptcy with its own Federal Minister of Finance Shaukat Tarin admitting that country was being forced to take several 'tough decisions' due to pressure of  International Monetary Fund (IMF). debt-ridden country is looking to revive crucial USD 6 billion Extended Fund Facility (EFF), which has forced Imran Khan-led government to implement a new raft of austerity measures on its population. 

Despite its attempts, Pakistan's consideration of completion of sixth review and release of a USD 1 billion tranche was deferred by IMF on January 10. After receiving a request from Pakistan government, IMF's Executive Board decided to postpone meeting. 

Tougher days ahead for Pakistan

Lately, Pakistan has been witnessing currency devaluation, high inflation, a spike in its petrol rates, and a current account deficit compounding its ecomic problems. Defending  spike in prices, Shaukat Tarin said that hike was a result of  IMF's suggestion to increase petroleum development levy (PDL). Pakistan's Opposition has alleged that government was turning State Bank of Pakistan into bank of IMF. 

Apart from international organizations, Pakistan has also been regularly borrowing from United Arab Emirates (UAE) which last month laid down stringent clauses for Imran Khan-led nation in exchange for its $4.2 billion loan pack.  last time it borrowed from Arab nation, it was forced to repay loan by taking a loan of same amount from China.

In turn, Pakistan has had to pay over Rs 26 billion in interest cost to China to repay a maturing debt in fiscal year 2020-21. Reportedly, cash-strapped nation is also facing scores of "hidden debts" totaling $385 billion due to China's Belt and Road Initiative (BRI) project. 

Im: PTI