The International Monetary Fund’s (IMF) behavior towards Pakistan is heavily influenced by the United States of America, therefore, Pakistan has to look at other options in case IMF decides to put a halt to the $6 billion programme, writes Dr. Hafiz Pasha in his new book.
The ruthless attitude of IMF towards Pakistan was influenced by the regional security-related needs of the US, Pasha wrote in his new book named, “Charter of Economy, Agenda for Economic Reforms in Pakistan.”
According to Pasha, “There is a view that the attitude of the IMF may be influenced by extraneous developments. However, the country will have to pay a huge price by yielding to the regional security-related demands of the largest shareholder in the board of the IMF, leading thereby to a softening of the programme.”
The author also pointed out the fact that the U.S is the largest shareholder with a stake of 17.4 percent in the fund.
Pasha’s views are coherent with the views of the current Finance Adviser, Shaukat Tarin, who believes that the International Monetary Fund is very harsh towards Pakistan. It is also to be noted that the fund has suspended the recent $6 billion programme since June this year as both sides are trying to solve the issues.
Furthermore, during the launching ceremony of the book, the former finance minister criticized the IMF heavily, pointing out that the current conditions set by IMF were the toughest in history. He also said that Pakistan has to “get rid” of IMF.
IMF has been pressurizing Pakistan to implement all the set conditions agreed as part of the 39-month Extended Fund Facility worth $6 billion.
Pasha suggested that Pakistan has to prepare accordingly and develop a strategy in case the fund was to terminate the programme.
It’s good that the IMF conditions are tough as the money is mostly coming from the ‘evil, Islamophobic West’. Perhaps stamp out corruption in your own country so you don’t need to keep begging for money.