International Monetary fund today sanctioned a loan of 6 Bn dollars to Pakistan with an intention to normalize the country’s financial condition. This move from the IMF could have given some oxygen to the Asian Country, who is in a great turmoil with military expenditures, excessive inflation and outstanding debt regarding a tax collection inability that counts to 36 Bn dollars.
The country in the last month summit confirmed that they will be minimizing the military expenses and will be collecting the huge tax, where they faced a severe challenge in the last few years. The country also promised to cease some of the civil activities and facilities that are running in the state now and that will help them to cut short the unusual expenses that are running at this time.
IMF in their statement stated that they are issuing this loan to Pakistan in order to make them get back to a stable economy in the coming years. The loan has been termed for 3 years and there will be a quarterly checking about the expenditure of the loan amount and the appraisal of the loan amount till the next 39 months.
They also stated that they have already disbursed the first billion dollars to the nation and Pakistan government also approved the receipt of the same. Now is the time for the Pakistan government to focus on the improvement of another economy, by ceasing the military activities of the nation and to meet the debts. The best way to reach that state is by collecting the huge tax amount that is pending for years. If they do follow such a mechanism, then the loan amount, the havoc inflation of the nation and many other things can all be restored and the situation can be made easy.