Bending over backwards: Desperate for IMF bailout, Pakistan saddles impoverished citizens with steep loan interest hike

Islamabad: Pauper Pakistan’s lifebuoy extended by the IMF seems to have become an albatross around the neck of the embattled and near bankrupt country. The Shehbaz Sharif government is pushing its already beleaguered people to the brink to meet IMF imposed conditions needed to unlock the $1.1 billion bailout package.In the latest, the Shehbaz Sharif-led government has agreed to hike interest rate on loans by 2 per cent or 200 basis points (bps) to meet another prerequisite set by the global lender.The release of $1.1 billion is part of $6.5 billion bailout package crucial for the Pakistan economy to remain afloat.Interest rate go up in PakistanThe interest rate in Pakistan would surge to 19 per cent, merely point 5 per cent (0.5 per cent), to the previous record of 19.5 per cent from October 1996.The report of rate hike comes, mere a month after the central bank of Pakistan raised its policy interest rate by 100 bps to 17 per cent on 23 January, 2023, the highest since 1998.Don't Miss: Pakistan may be bankrupt, but Pakistanis give biggest ever opening to coffee giant Tim HortonsA report by The Express Tribune quoted sources in Pakistan's Finance Ministry saying that government officials and the IMF review mission have virtually held a technical-level discussion.Pakistan going hammer and tongs to get IMF loanPakistan government has been taken a slew of measures including raising taxes, removing subsidies and artificial curbs on the exchange rate to secure the IMF funding.The 200 bps increase is based on the rates the Pakistan government set in the auction to raise domestic debt.Reports say the government has raised $991.54 million in the auction on Wednesday.As per sources to The Express Tribune, the discussion on some issues of the power sector between Pakistan government and IMF officials were in its last leg.Must Read: Pakistan Perversion Horror: University says write essay on 'brother, sister making physical relation on French beach'Earlier this month, the Pakistan government and the IMF officials wrapped up the ninth review of the $6.5 billion bailout package without a staff-level agreement. Officials of the Shehbaz Sharif-government had hoped that they would be able to convince the global lender about implementing the conditions in a gradual manner.However, their hopes were dashed during the IMF mission's 10-day visit to Islamabad.Also Read: Pakistan’s elite in trouble amid bankruptcy as IMF tells Shehbaz Sharif govt to tax only the richReeling under acute economic crisis, PM Sharif recently instructed his Ministry of Foreign Affairs to cut the number of foreign missions as part of austerity measures.Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.