LATEST reports suggest the International Monetary Fund (IMF) has acknowledged that Pakistan has made ‘substantial progress’ toward meeting policy commitments needed to unlock loans the country needs to avoid a default but at the same time it has asked the country to do more. The Fund is putting pressure on Pakistan to secure assurances from countries that have promised financing support. In addition, it is also raising new questions about the viability of the relief measures and subsidy programmes that the Government has announced to help ease life, to some extent, for the highly vulnerable segments of the society. According to Esther Perez Ruiz, the IMF’s resident representative for Pakistan, a staff level agreement will follow once the few remaining points are closed.
The Fund had also rubbished claims that revival of its stalled programme for Pakistan had any linkage with the country’s nuclear programme, adding the discussions have exclusively focused on economic policies to solve Pakistan’s economic and balance of payments problems, in line with the Fund’s mandate for promoting macroeconomic and financial stability. However, the shifting stand and unending new demands on almost daily basis allude to some hidden agenda to weaken the country economically or indirectly force it to abandon its nuclear and missile programmes. For several weeks, the Government leaders have been telling people that an accord would be signed ‘next week’ but we are nowhere near the signing stage as far as the IMF is concerned. It is because of extraordinary and un-understandable delay on different pretexts that Pakistan is now resorting to manage the talks with the IMF through diplomatic contacts with the relevant US officials. Based on pace, trend and pattern of engagements with the IMF, one is constrained to conclude that, unlike in the past, this time round the assistance, if ever offered, will come at the fag end of the implementation phase. Apart from this, the highly intrusive policy adopted by the IMF is frustrating people of Pakistan, who are now questioning the very rationale for securing such a brutally stringed assistance. It is unfortunate that a country like Pakistan with immense agricultural potential and a hardworking manpower should close its mind to options other than IMF dependency. No doubt, it is because our own track record of obtaining loans without increasing the pay back capability of the country has pushed us to a stage where we have to take more loans to retire earlier ones. And it is because of the same reason that some of the countries with which Pakistan had traditionally very close and cooperative ties are also reluctant to offer assistance without a nod from the IMF, which is being manoeuvred by some influential countries. However, despite all this, the country can manage its affairs without an IMF package which is not a bailout in the true sense of the word as such a package increases the burden of the country’s debt. People of Pakistan have always offered great sacrifices for the cause of the motherland and this is also confirmed by their cooperative attitude vis-à-vis the toughest measures the Government has introduced at the behest of the IMF that have made their lives miserable. There is also an impression that the common man has contributed its share to the national economy and kitty but the elite and resourceful segment of the population is still not willing to play their part in this regard. Ever since creation of Pakistan, this elite class has been squeezing more concessions but not paying even its due taxes. Make them pay their due taxes and the country would not need the clutches of the IMF or assistance from other bilateral donors. It is time to do away with the IMF programme that casts aspersions on the political and economic sovereignty of the country. What a pity that an elected Government cannot announce even a single scheme for welfare and relief of the people (based on their genuine urgent needs) without a nod from the IMF! The national leadership should have brainstorming sessions on options other than IMF and formulate a workable strategy to run affairs of the state without external loans which are nothing but an addiction for some sections of the society. Re-prioritize policies, divert resources to basic needs of the people, develop agriculture, focus on industrialization, curb unnecessary imports and use remittances for productive programmes.
