Pakistan in deep crisis: Pak is fascinated by pie, will now sell government property to meet expenses
Highlights
- Pakistan government will sell shares of government companies
- Ownership will remain with the government
- US$ 17.4 billion debt on Pakistan
Pakistan in deep crisis: Pakistan, which is facing severe economic crisis, is now planning to sell shares of government companies to friendly countries. For the financial year 2022-23, an assistance of $ 4 billion will be needed by the International Monetary Fund (IMF). So that he can make up for his financial loss.
According to a report in Pakistan’s famous ‘Dawn’ newspaper, Pakistan’s Finance Minister Miftah Ismail has decided to amend the law to sell shares of state-owned companies. Apart from this, the government of Pakistan is also planning to sell two state-owned LNG based power projects- Balloki and Haveli Bahadur Shah to friendly countries to tide over the financial crisis.
Bad Governance is Responsible
Pakistan’s finance minister has cited “poor management” and “poor governance” as reasons for being in a position to sell state-owned companies. He said that most of the state-owned companies were run by professionals. But still they could not perform better. Now the time has come to replace the old laws and create a better framework which can play an important role in the development of Pakistan.
Which country will buy Pakistan’s share
To which friendly countries will these shares be sold? Not clear yet. However, Pakistan has close ties with countries like China and Saudi Arabia, which have provided considerable assistance during its financial crisis. He further clarified that Pakistan is only selling shares traded on the stock exchange. The ownership of the company will remain with him in future also.
The report said that the government is selling shares due to the recent economic problem, which will be bought back when it improves. He has assured the people of the country that the situation will improve soon. But the reality seems to be the opposite. Pakistan’s foreign exchange reserves are depleting rapidly. It has a debt of US$ 17.4 billion.
Inflation rising wildly in Pakistan
Rising inflation in Pakistan and now the increasing debt burden is going to take Pakistan on the path of Sri Lanka. Inflation rate in Pakistan went up to 21.3 percent last month. Which is the highest level in the last decade.
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