Pakistan Secures IMF Bailout Funds But Higher Prices Spark Concerns
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Pakistan secured a $700 million tranche from the IMF as part of a $3 billion bailout, but IMF conditions like higher taxes and energy costs will hurt the public.
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Since the IMF deal in July, fuel, electricity, and gas prices have gone up, fueling high inflation and unemployment.
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The business community has concerns about the rising cost of doing business, while supporting the Special Investment Facilitation Council (SIFC).
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The IMF expects inflation to further decline, but warns of vulnerability to global risks and the need for resilience.
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While markets rallied on the IMF deal, analysts say reliance on external aid is unsustainable and tough reforms are still needed.