Published 14:37 IST, September 27th 2019
Pak in financial crisis despite IMF loan, aid from China, US: UN
Despite the huge loan from the IMF, and support from its all-weather friend China as well as Saudi Arabia, that the country is facing a financial crisis
- World News
- 2 min read
Pakistan as a nation continues to face economic crisis, as per the United Nations. Despite the huge loan from the International Monetary Fund (IMF), and support from its all-weather friend China as well as Saudi Arabia, UN has said that the country is facing a financial crisis, says an ANI repory. The UN's Trade and Development Report 2019 under its Asia section made a brief comment on the economic situation in the Pakistan. The report says that Pakistan is in the midst of a crisis.
UN report states Pak amid financial crisis
The UN Report states that, "Pakistan is in the midst of a crisis" It adds that growth rate of the country has halved and that the balance of payments is in poor shape. It also says that Pakistan's currency the Pakistani rupee has depreciated significantly and that external debt is large and rising. It adds that a slowdown in China's rate of growth increased from 2017 will increase in 2019 owing to trade and technology tensions.
China's reducing growth rate affecting Pak
The report says that slowing down of China's growth has a major impact on other East Asian and South-East Asian economies. It says that integrated value chains spread across these economies and linked to China would be disrupted. The report further stated that public banking should be given back its traditional, bigger role if the environmental and economic landscape is to be transformed by 2030.
The annual fiscal deficit of Pakistan rose to the highest in the last three decades at 8.9 per cent for the financial year 2018-19. The fiscal deficit is a difference between revenues and expenditures of the federal government.
Pakistan Prime Minister Imran Khan, who was elected on an anti-corruption plank and a pledge to end austerity measures, had vowed to improve the depleting economic situation of the cash-strapped country
. In reality, prices of gas and oil products and electricity in Pakistan have risen considerably, burning a hole in common man's pocket
(Inputs from ANI)
Updated 14:43 IST, September 27th 2019
