IMF's nod, really?

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The reported appreciation from the IMF for economic reforms that Pakistan has undertaken is a jiff of fresh air. In a meeting on the sidelines of the World Governments Summit (WGS) 2025 in Dubai, the lender was assured by Islamabad that achieving macroeconomic stability remains a priority. This should come to ease the bottlenecks on the path of releasing the next due trance from the Fund worth over $1 billion, ushering in the desired liquidity and reinstating the shattered confidence of other international investors in the fragile economy. It is all the more important for driving sustainable growth when GDP growth projection has been slashed to around 2 per cent, and the country faces an uphill task in meeting the tax collection targets.

There is, however, a flip side too, and that is the presence of a high-powered IMF delegation in Pakistan busy meeting more than a dozen stakeholders. While the Dubai communique talked of achieving growth and financial stability, the mission in Pakistan is more concerned on human rights, corruption-free governance and judicial independence. In this regard, it has met the Chief Justice apart from officials in various ministries, private entities and political elements. With contestable legislations such as PECA and the 26th amendment making their way in a daredevil manner, literally usurping fundamental rights guaranteed under the Constitution, it would not be a walkover for the government to post a rosy picture to the international economic gurus.

While Pakistan has endlessly been part of Washington-based donor's largesse, it has failed to fix the economy and stay afloat. Moreover, the regression noticeable in social indicators, over the period of years, is a worrisome proposition that now stands further complicated with alleged trampling of citizens' rights. The EU and IMF mission have squarely pointed towards that fractured paradigm, soliciting immediate intervention to keep the line of finances intact. Rather than being euphoric, the economic managers are better advised to put the house in order.