Why the IMF?
January 02, 2023
Indeed, going for support to the IMF is a country’s worse economic nightmare as implementing its standard prescription of strong stabilisation measures, backed by tough economic reforms, inevitably results in economic misery for the poor and the newly emerging middle class. However, without its support and ‘letter of confidence’, many countries face the threat of default as programme lending from IFIs (World Bank, Asian Development Bank) is dependent on their green signal and without it global financial markets punish you with unaffordable high rates of interest.
Pakistan has been under a dozen IMF programmes over the last 30 years of which only two have been successfully completed. Both sides blame the other — the IMF that we have never followed through promised reforms and our economic policymakers that the cost is far too high and the benefits a distant mirage.
Read more »Labels: IMF, Pakistan Economy, Publications
posted by S A J Shirazi @ 1/02/2023 10:32:00 AM,
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