Under compelling economic situation, govt had to approach IMF: Fawad

ISLAMABAD: Information Minister Chaudhry Fawad Hussain on Saturday said the government had to go to the International Monetary Fund (IMF) for loans under compelling economic situation in the country.

“The country needs eight billion dollars to pay back loans this year,” he said while talking to newsmen in Lahore.

Fawad said the government was set to accomplish the task of constructing five million houses.

He said the government was determined not to spare those persons who plundered the national exchequer.

Read More: IMF stresses need for strict measures to cure ailing economy

The minister said he had submitted a resolution in the National Assembly for constitution of a parliamentary commission to identity those responsible for current fragile financial situation of Pakistan and submit its report in one month.

He expressed the hope that the country will not be facing a similar situation when the Pakistan Tehreem-e-Insaf government completes its term.

The IMF has predicted that the standard inflation rate in Pakistan may strike to 14% by June 2019, such inflation rate will lead to higher interest rates to almost 15% which will affect the economy significantly.

It is observed that such elevated stage of inflation can effect Prime Minister Imran Khan’s most determined flagship programme of constructing five-million low-cost housing units.  To complete such planning banks lend money over and above the policy rate, which will diminish the government’s options to give financial support on housing loans.

According to sources, taking actions for stability are vital in such position, IMF has also proposed economic growth rate of below 3% for fiscal year 2018-19.