Changes proposed by IMF only prove detrimental to the middle class of Pakistan
KARACHI: It is clear that the conditions in Pakistan are such that the government cannot do without external help. Imran Khan’s bid to the IMF has undoubtedly broken many hearts that were seeking hope in the form of an influential and popular leader.
On the other hand, bold structural changes, courtesy the IMF, are being implemented in the economy. Apparently Imran Khan is faced with a moral dilemma: safeguarding the people or stabilising the economy; and it is clear where he is leaning. For him, the answer seems simple: the better the economy the more satisfied the people.
Furthermore, for the betterment of the country, he seems to have put his values, which were set out before the elections, on the line by going back on his promises. It is without a doubt that in a crisis, bold moves need to be made, but at the same time we need to take a step back and assess what and who is at stake.
The changes proposed by the IMF such as the tax hike only prove detrimental to the middle class of Pakistan as most of the lower class is exempted. Furthermore, there is much criticism since this ‘shock therapy’ may prove to be beneficial during the time of re-election but will not seem to hold in the future as the Latin American countries have shown before.
Like others, Imran Khan has fallen into the old trap of coinciding GDP per capita with the standard of living as most of his focus is on the economy. These representations do not provide us any evidence and its increase will not benefit the masses unless at least the basic necessities of the people are met.
Muhammad Hasan
Published in The Express Tribune, July 14th, 2019.
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