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Why Bangladesh managed to get bailout package from IMF but Pakistan is still negotiating

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The $4.7-billion package will help Bangladesh maintain its power supply and run the industries. At the same time, it would be able to extend food relief for households that are unable to afford rice and other staples.

New Delhi, Feb 2: Pakistan's credit in the global financial market has fallen so low that no international organization wants to lend them any money. On the other hand, Bangladesh, a country that was formed after the breaking down of Pakistan, has been able to build a reputation and credit that the same organizations are quite willing to extend loans freely.

In the recent development, though the International Monetary Fund (IMF) signed off on a $4.7-billion support loan package for Bangladesh, it did not say a word on granting loans to Pakistan, especially when it is on the verge of economic collapse. The country does not have forex reserves that could sustain for more than three weeks.

Why Bangladesh managed to get bailout package from IMF but Pakistan is still negotiating

Not just the forex reserves are at all-time lowest levels but the soaring energy and food costs in Pakistan has created a law & order situation in the country too. People can be seen carrying out huge protests against the establishment as they don't have enough food and other essential commodities. There are food riots at various locations while long queues at petrol pumps has become a common sight in the country.

Hindu teacher suspended for allegedly insulting Islam in BangladeshHindu teacher suspended for allegedly insulting Islam in Bangladesh

Bangladesh receives financial assistance in need

Bangladesh has registered massive growth over the last couple of years; however, it too got badly affected by the higher fuel prices in the global markets since the Russo-Ukrainian war. It has become difficult for the country to afford the higher prices of imported fuel and to meet that demand, it requires financial assistance from the global bodies like the IMF.

Like Pakistan, Bangladesh too is facing power shortage and nationwide blackouts are common. At some places, there are blackouts for more than 13 hours a day. This has affected the industry, especially the textile sector for which Bangladesh is known around the world. The IMF has given the package to meet the power requirements from the industry and run its power grids.

The $4.7-billion package would help the country maintain its power supply and run the industry smoothly. At the same time, it would be able to extend food relief for households that are unable to afford rice and other staples. Out of the whole package, Bangladesh has already received $476 million immediately as a quick relief.

Why Pakistan is on the brink of disasterWhy Pakistan is on the brink of disaster

Pakistan left high and dry

Interestingly, Pakistan has been left high and dry even after so many rounds of talks with the IMF. After losing its relevance in geopolitics due to the Americans deserting Afghanistan, even the US is not offering any alms to the failed State anymore. The Chinese are already worried about the huge loans it has given for its ambitious CPEC project.

Pakistan is now in a deep economic crisis and facing the prospect of looming national bankruptcy like Sri Lanka. Interestingly, when even Sri Lanka has managed to get an IMF grant to bring its economy back on track, Pakistan has failed to do so, solely due to its bad image and history.

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