KARACHI:
Our ruling elites have always blamed others for the economic instability instead of accepting any responsibility themselves. Undoubtedly, the International Monetary Fund’s (IMF) agenda-driven conditionalities put Pakistan’s economy in a tight spot, but the government’s failure to deliver can never be excused. Pakistan has a long history of going to the IMF. Each time, the incompetent and inefficient governments drive the country to the brink of an economic meltdown and then claim that only IMF can bail out the country.
IMF was formed in 1944 to perform the roles of monetary cooperation, stabilise currency exchange rates and lend upon a balance of payment crisis. But it has switched roles since then and is now influencing the internal affairs of the borrowing countries. One example is Argentina which took the largest-ever loan of around $57.1 billion in 2018. This was followed by a surge in inflation, a fall in employment, and an outflow of capital. This shows that countries that seek the IMF’s support to relieve masses of the crisis are compelled to do the opposite. IMF conditions such as budget cuts in public sector development programmes, increase in taxes and reduction of subsidies further intensify hardships for the public.
However, IMF alone cannot be blamed for Pakistan’s current economic turmoil. Why has Pakistan failed to strengthen its economy even after 74 years of independence? Even though the country requires IMF support right now, long-term structural reforms need to be implemented to strengthen the economy and reduce reliance on international lenders. Our ruling elite must get their act together and work for the economic betterment of Pakistan.
Ali Muhammad Khan
Sukkur
Published in The Express Tribune, February 17th, 2023.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
