IMF’s primary objective is to promote global economic stability and growth. Its mandate involves providing financial assistance to member countries facing economic crisis and offering policy advice and technical assistance to ensure sustainable development. The institution’s actions are governed by strict guidelines and principles of fiscal responsibility and accountability. This approach, however, relies primary on monetary self-gain and fails to consider other pressing factors. This seems to be particularly in the case of Pakistan as recent accusations by activists claim that IMF is exacerbating the climate catastrophe rather than paving a sustainable path forward.
Climate change is undoubtedly one of the most pressing challenges of our time. Critics argue that IMF’s lending programmes do not adequately address the environmental consequences of economic policies in borrowing countries. They contend that IMF fails to condition its financial assistance on the implementation of environmental safeguards, ultimately contributing more to the crisis. Here, IMF faces a delicate situation in addressing economic stability and climate change simultaneously. It must navigate the complexities of global finance while considering the unique circumstances of member countries. The pre-conditions that IMF has imposed on Pakistan blatantly ignores the recent climate-induced consequences the country is reeling with. It is near impossible to recover from the widespread destruction that floods have caused in the midst of currency devaluation, hyperinflation, rising taxes and spiraling energy prices. How does IMF expect Pakistan to cover the $10 billion in losses and initiate a recovery phase when stringent conditionalities are being imposed with little room for negotiation?
Moving forward requires a collaborative approach and the world community must step in immediately. Promises of reparations are yet to be fulfilled as Pakistan stares implosion in the face. Internally, the finance and climate change ministry must create a holistic advocacy path to put a strong case forward.
Published in The Express Tribune, May 21st, 2023.
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