Billions are needed: who is going to help Pakistan stabilize its economy?

PTI stabilizing economy especially without ruinous loans will be worth praising.

(Web Desk) – Pakistan is suffering a lot at the hands of various social and financial ills; deteriorating economic situation is one of them. Finance Minister Asad Umer, an exemplary economic figure, has said Pakistan needs a gigantic amount around $9 billion to keep the economy running. “We are deliberating on (various) options. We will map out a plan over the next few days and we will share it with the parliament,” the finance minister said yesterday.

If looked at the international donors, they may be ready to assist Pakistan to stabilize its economy, but American pressure on them is evident.

The World Bank (WB) Wednesday said it was ready to support the reform plans of the new Pakistani government for stabilizing the economy and accelerating growth to end poverty and boost prosperity. The commitment was made by the World Bank’s newly appointed Vice President for the South Asia Region, Hartwig Schafer, when he met the government and key counterparts to discuss Pakistan’s development priorities and reform agenda, according to a statement issued by the World Bank.

 “The visit gave me an opportunity to learn more about how we support millions of people in Pakistan, especially the youth, through investments in health, nutrition, education, skills and the digital economy,” Schafer said.

This announcement has come at a time when Pakistan’s key ally USA has International Monetary Fund (IMF) not to issue any loan to Pakistan any more. USA is of the view that these loans are used to repay the loan taken from China.

Pakistani government adviser has told the Financial Times, “The US is trying to spoil China’s biggest contribution to our future.”

“I am impressed to learn of the Government of Pakistan’s plans for investing in human capital and creating jobs, attracting investments through ease of doing business and better regional connectivity, improving infrastructure and services in Karachi, and strengthening the management of water and the environment,” Schafer said. “We look forward to engaging the federal and provincial governments and providing support to implement urgent reforms needed to stabilize the economy and achieve accelerated growth in the medium term.”

Saudi Arabia, an all-time friend of Pakistan, has also vowed to assist Pakistan financially. Saudi Arabia’s Ambassador to Pakistan Nawaf bin Said Al-Malki help meetings with PM Imran Khan and Finance Minister Asad Umer and conveyed the message of King Salman bin Abdul Aziz and Crown Prince Muhammad bin Salman to help overcoming fiscal difficulties in the times to come. They have also talked to Imran Khan and assured him for financial as well as non-financial assistance. China, another aide of Pakistan, is already assisting Pakistan and has vowed to continue doing so in case there is any major economic downfall.

Even though USA is attempting her best to exert its influence over international organizations not to give Pakistan any bailout package, there are still a number of option for Pakistan. The above mentioned being some of them, the only and real issue will be repayment of the money borrowed. At this time Pakistan government has not decided to take any assistance from any entity.

Pakistan is already under heavy internal and external debt loads, how it can borrow more. Undoubtedly, successive governments failed to have Pakistan out of looming economic crisis. Now any option cannot be left aside as Asad Umar said; the only thing to ensure by Pakistan government is to avoid corruption and creating sources to generate more and more money.