Vikrant Shekhawat : Mar 21, 2023, 11:16 AM
Pakistan Vs Srilanka: One of the two neighbors of India, which reached the brink of poverty, has got relief, while the other has been wringing its hands. Pakistan has been negotiating for a loan from the IMF for a long time, but Pakistan, which has given back-breaking taxes to the common people, is still waiting for relief. Whereas India's southern neighbor Sri Lanka seems to have won the game in this matter.The IMF has approved a $3 billion relief program to bail out debt-ridden Sri Lanka from its economic crisis and seek financial help from other development partners. Colombo on Tuesday welcomed the move and described it as a milestone. The Executive Board of the International Monetary Fund on Monday approved a 48-month extended arrangement under its Extended Fund Facility (EFF) amounting to SDR 2.286 billion (about USD 3 billion), according to a statement.For the last two years, Sri Lanka has been badly affected by a devastating economic and humanitarian crisis. The IMF said the economy faces significant challenges stemming from pre-existing vulnerabilities and policy missteps in the lead-up to the crisis, which have been further exacerbated by a series of external shocks. The EFF-supported program aims to restore Sri Lanka's macroeconomic stability and debt sustainability, reduce the economic impact on the poor and vulnerable, protect financial sector stability, and strengthen governance and development capacity, the statement said. .The Executive Board's decision will enable immediate disbursement of the equivalent of SDR 254 million (about USD 333 million) and financial support from other development partners. India is facing its worst economic crisis since independence from Britain in 1948. In April last year, Sri Lanka announced the first default in its history.President Ranil Wickremesinghe welcomed the decision announced by the IMF on Tuesday.The program will help Sri Lanka access funding of up to USD 7 billion from the IMF, International Financial Institutions (IFIs) and multilateral organisations, it said in a statement.Earlier this month, Sri Lanka received IMF-compatible financing assurances from its official creditors, including Paris Club members India and China, allowing the IMF to convene an executive board and consider Sri Lanka's request for a loan. Gave