Pakistan’s Economic Crisis: Hajj quota given up to Saudi Arabia
Pakistan has decided to hand over its Hajj quota to Saudi Arabia for the first time in 75 years. This decision was motivated by the country's soaring inflation, which has driven thousands of Pakistanis to skip the journey this year. In total, Pakistan has returned 8,000 unused seats, which will save the government a considerable amount of money totalling $24 million.
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Hajj quota given up to Saudi Arabia: Key Points
• The Ministry of Religious Affairs has confirmed that the government scheme quota has been returned.
• This decision was made to save millions of dollars that would have been needed to accommodate the pilgrims, as Pakistan is currently experiencing a huge inflation crisis.
• The federal government had previously stated that there would be no balloting for hajj applicants, as they anticipated a shortage in applications.
• As a result, Pakistan was given the full share for the pilgrimage this year, following the government’s long-standing demand to increase the quota.
Pakistan Working with IMF
Pakistan is currently working with the International Monetary Fund (IMF) to conclude a ninth review of a bailout programme. Pakistan and the IMF have been in discussions since February about fiscal policy measures that will assure the blocked funding of $1.1 billion due in November from a $6.5 billion programme agreed in 2019.
The current inflation rate in Pakistan is at an all-time high of 36.4%, making IMF funding crucial to prevent default on external payment obligations. The current IMF programme aims to distribute an additional $1.4 billion for Pakistan before concluding in June.
