"Former finance minister Hafiz Pasha warned that Pakistan’s inflation can skyrocket to 70% in case of default. Even if the International Monetary Fund’s (IMF) loan is revived, inflation will still rise to at least 35%, owing to the lender’s strict conditions.
Addressing members of the Pakistan Industrial and Traders Associations Front (PIAF) on Tuesday, Pasha forecasted that Pakistan’s overall economy is likely to remain in severe stagflation in 2023.
“If the government implements the key reforms agreed with the IMF, including a Rs50 levy per litre on POL, an electricity tariff hike of 40%, doubling of the gas tariff, and shift to market-based exchange rate policy, the inflation rate could exceed 35%,” he cautioned. If the government does not implement the agreed reforms, he said, “It will lead to a termination of the IMF programme and will virtually dry-up the country’s capital.”
“Our reliance on expensive foreign loans has proven to be disastrous. In the first 65 years, the country’s debt was $65 billion. This jumped to almost $130 billion in the next seven years as we enhanced our reliance on high interest loans that are difficult to payback,” he highlighted."
An attorney told one of our Pakistan leaders that martial law is going to be declared within days if Pakistan defaults. Please pray for the people in Pakistan. Either way, the Pakistan economy is going to take a hit and it will be more expensive to provide aid to our brothers and sisters in Pakistan. If you are able, please consider donating to our brothers and sisters in Pakistan before the bank transfer taxes are implemented and before inflation sky rockets in Pakistan.
Thank you for the recent emergency donations that were made over the last 24 hours based on this news. May Yah bless you for your kindness and compassion.
Source: Startup Pakistan
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