Pakistan, India's neighbor, has imposed several conditions to get a loan from the IMF while its economy is in dire straits. Most of these regulations are meant to increase the government's tax revenue, which the people of pakistan are already suffering from without income due to high inflation.
However, the government of pakistan raised the fuel tax to secure a $3 billion loan from the IMF. Not only this, restrictions were imposed on various services, and government expenditure was also reduced in many ways. Inflation has increased for the first time while there was no problem in the last 4 months. According to data released by the pakistan Statistics Organization, the Consumer Price Index rose by 31.44 percent in September. That's higher than the average estimate in a Bloomberg survey of 30.95%, and higher than the 27.4% reading in August. Pakistan's policymakers have been recommended to raise the benchmark interest rate on october 30 to curb inflation while Pakistan's economy is in dire straits. It is expected that the interest rate may rise in the meeting to be held on october 30 after the june meeting was canceled due to inflation being under control for 3 consecutive months. The main reason behind Pakistan's inflation is fuel prices which were announced a few months ago, recently petrol, diesel, and kerosene prices have increased significantly due to the large rise in crude oil prices. It has now started to affect in a big way. As a result, transport costs in pakistan have increased by 31.26 percent compared to last year in September, and food prices have increased by 33.11 percent. Along with this, the price of houses, water and electricity has also increased by 29.70 percent. While the LPG price has been increased by Rs 20.86 per kg, the cylinder price has gone up by Rs 246.16 to Rs 3079.64.