It is important to note that the IMF has raised its loan amount to $6.5 billion from $5.3 billion that it had initially offered to Pakistan. According to the present government, this loan has been primarily taken to repay earlier IMF loan that its predecessor government obtained and later squandered. It is, however, a great matter of concern that many of the tax proposals to increase revenue could not be implemented in the last fiscal year.
On the other hand, subsidies paid were also well over what had been budgeted for the full year. Indeed, the country's economy is in dire straits. One does not really know whether or not the fresh IMF loan would ease country's economic woes.
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