Pakistan's rupee plummets against the dollar as country's government agrees to comply with IMF
FOX NewsNov 24, 2022
The Facts
On Thursday, the International Monetary Fund (IMF) criticized Pakistan's recently presented budget, a severe setback for the financially struggling country as it approaches a June 30 deadline when its bailout program will expire.
The Pakistani government hoped the ₹14.4T ($51B) budget for 2023-24 unveiled last week could break a months-long deadlock with the IMF over reviving a stalled $7B lending program and allow the country to deflect a looming default.
The Spin
Pro-establishment narrative
Pakistan's economy is on the brink. However, the chances of Pakistan meeting the IMF's conditions are low due to the severe political turmoil in the country. The South Asian country is at risk of defaulting on its debt obligations as its financing options beyond June are highly uncertain.
Establishment-critical narrative
Pakistan can't let itself be a hostage to the IMF and allow itself to be treated like the West's colony. The country will execute a contingency plan if the June 30 deadline is met without concessions, which includes working on rescheduling the bilateral external debt of over $27B next month and turning to China to come out of the global lender's clutches.