After a lot of efforts, Pakistan finally got a loan from the IMF. The IMF board has approved a new loan of $7 billion for Pakistan. But the troubles of the neighboring country are not over yet. According to Pakistani economists, this deal will only help in paying off immediate loans, nothing more than that. Pakistan has said that after the loan is approved, it will now have to go through transitional pain. However, Pakistan's economy, which was on the verge of bankruptcy last summer, has now become stable. Pakistan's economy is dependent on IMF bailout packages and loans from its friendly countries. The situation is such that half of Pakistan's annual revenue is spent in paying the interest on this loan.

The deal was done with the support of Saudi Arabia, China and UAE

Pakistan's Finance Minister Muhammad Aurangzeb told local media, "This loan will cause transitional pain. But if we have to make this the last program, we have to do structural reforms." The IMF said in a statement that it would release about $1 billion immediately. Prime Minister Shahbaz Sharif has said that the deal was done due to the "tremendous support" of Saudi Arabia, China and the United Arab Emirates.

Pakistan will have to pay huge interest

The Pakistani Finance Minister is talking about transitional pain in this loan because now the country will have to follow the conditions of the IMF. Along with this, a huge amount of interest will also have to be paid. Sharif said, 'In the last phase of the negotiation of the deal, the IMF conditions were related to China. I am really grateful for the way the Chinese government supported and strengthened us during this time. 

This loan will only help in repaying the loan

"This deal will help us pay off our immediate debts, but nothing more. The only economic reform we need to implement is higher taxes. There has been no progress in reducing government spending either," Pakistani economist Qaiser Bengalee told news agency AFP.

China has the highest debt on Pakistan

According to the IMF, by the end of 2023, Pakistan had a total debt of more than $250 billion or 74 percent of GDP. About 40 percent of this debt is taken from foreign lenders in foreign currency. China and Chinese banks have given the highest loan to Pakistan. This loan is close to $30 billion. After this, the World Bank has given a loan of $20 billion.