It is easily one of the largest loan package that Pakistan is seeking its largest loan package to bail itself out from a severe balance-of-payments crisis.
Pakistan is seeking up to $8 billion from the IMF.
The balance-of-payments crisis now threatens to cripple the country’s economy, it is said.
But the International Monetary Fund or IMF could place strict conditions in lieu.
This could very well force Pakistan to seek additional loans for meeting those restrictions and this could expand the loan facility to $12 billion.
Pakistan Finance Minister Asad Umar confirmed that the government was going to the IMF to bail Pakistan out of its foreign currency crisis.
The announcement followed the highest single-day loss in a decade in the stock market, which plunged by over 1,300 points, losing almost Rs. 270 billion of its capitalisation.
Meanwhile, the Pakistani government came under heavy criticism after announcing that it would seek bailout assistance from the IMF.
The Pakistani government’s decision will create hardships for Imran Khan as the IMF’s tough conditions will result in price hike.>