Pakistan will have to rely more on IMF

Subject

Pakistan's economic woes.

Significance

Prime Minister Imran Khan says he cannot afford to declare a COVID-19 lockdown in Pakistan because of the damage it would do to the economy, although provincial authorities have imposed restrictions on movements and business operations anyway. Meanwhile, Islamabad has approached the IMF for a 1.4-billion-dollar loan to help deal with the economic impact of the pandemic, on top of the 6.0-billion-dollar bailout it secured from the Fund last year.

Impacts

• Khan will increasingly emphasise the importance of youth volunteers in helping poorer people affected by the COVID-19 crisis.
• Currently low oil prices may help reduce Pakistan’s import bill even as the current account deficit widens.
• The Federal Board of Revenue will struggle for direction until its leadership situation is clarified.