Pakistan is the only country in the world where securing a public-financed bailout from the International Monetary Fund (IMF) is considered a “major economic milestone”.
Prime Minister Shehbaz Sharif on Wednesday lauded the successful staff-level agreement with the IMF for a $1.3 billion loan plus $1.3 billion in climate financing. He termed it a “major milestone” in our path towards recovery.
Without offering a lot of facts to support this argument, he said that the agreement would raise Pakistan’s foreign reserves to $8.3 billion and said it was a big achievement.
The prime minister said tax collection had surpassed IMF expectations and reaffirmed the government’s commitment to maintaining the Rs. 12.3 trillion tax target for FY25. He claimed that his team rejected the IMF proposals to lower it during the review talks.
Why don’t we celebrate the $3.1 billion remittances sent by overseas Pakistanis? That is rent-free, tax-free, and corruption-free. In 8MFY25, remittances increased by 32 percent YoY to $24 billion compared to inflows of $18.3 billion reported in 8MFY24.
For what it is worth, the bailout will most definitely be churned out of the taxpaying salaried class and low-income groups (they don’t have to be classified as filers here).
The SLA shouldn’t be considered a measure of success but rather evidence of continued dependency. Instead of real economic progress, the government is lauding a temporary liquidity injection that does nothing to address the structural deficiencies causing Pakistan’s fiscal crisis. If this is an economic milestone, then what do we call sustainable growth, industrial expansion, or rising exports?
Many on social media have called Pakistan one of the world’s biggest ponzi schemes for money controllers to ship dollars. Are they lying? Most commentators on X don’t think so.
And let’s not forget that this IMF bailout, like all its predecessors, will be wasted on interest payments, fiscal management, and inefficiencies rather than genuine economic reforms. The hope is that this program helps authorities rein in stability and reduce dependency on foreign lenders to stay financially afloat.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of ProPakistani. The content is provided for informational purposes only and is not intended as professional advice. ProPakistani does not endorse any products, services, or opinions mentioned in the article.
An Economic-Illiterate or financial-illiterate person can say this, but the Finance Minister is also working on the same lines, so it is now crystal clear that everyone is proceeding towards making Pakistan a default state, because when you dont have money to pay your debt that what will happen? Default means this. We can only pray Allah in this holy month of Ramzan to get the nation rid of this these ridiculous political and bureaucratic mafias, Ameeen Summa Ameen
Pakistan need more loans we need more loans for dams and electric buses.
If the opinion expressed in this article does not reflect your organization’s policy, then why are you allowing it to be posted here?
Opinion pieces never reflect the organizations’ policy, that’s standard practice in journalism. That’s why they are “opinions”.
My opinion is moderated but someone opinion is published. Lol
Mafia looted TAX money is several fold bigger than IMF loan.
This so called achievement is celebrated because our incompetent ruling elite has no other solutions to improve the economy.
Alot of this are correct but some are wrong
Imf loan means US cannot create tensions with you or will do best to avoid it.
I agree imf loans are a disaster but you are forgetting the part that our govts is run by 70 to 80 yr olds WHO ONLY KNOW how to beg imf everytime .
I am not an expert, but at least I know if you want to avoid loans, you have to cut spending, and we are doing the opposite.
For you milestone must have been “No loan for PK”
Its laughable that our P.M is lauding fr IMF rather saying this mistake will not be tolerable ever….good P.m and all M.C leaders…its all blunder and corrupt MAFIA
Main to maam garib hun Meri madad kijiye mere 5:00 baje hai usko Delhi dena hai mere pass kuchh bhi Nahin hai Meri madad kijiye 4180305997456aasha03052909013