This article was published in the Herald's September 2018 issue. To read more subscribe to the Herald in print.
Pakistan is on this never ending financial roller coaster and can not get off till a leader with spine, brains and integrity comes along and imposes policies to restructure the economy of the country.
Right now, all the Paksitani Government is doing is giving equivalent of an Aspirin to a fourth stage cancer patient and hoping for a miracle.
IMF is not good for poor countries like Pakistan. unless we get out of IMF shackles, we cannot come out of poverty.
just renew your terms but don't take any further loan
22 opportunities to learn a lesson or two. Have you learnt them Sir?
The answer to the title question is emphatic "yes". The IMF loans and associated conditionalities always saved us from becoming a defaulter. So far no government took measures to put up policies to avoid going back to IMF. Let's see the performance of the current one.
Debt with sood is never good. There is really not much to think here.
If you know where the money goes and what it does, you can take as much loans as you can.
As with individuals, also with countries. Others can help you, they cannot save you. Your distress is due to bad policies or bad habits with a dose of bad fortune. Why is it that Bangladesh, which started off as a basket case, does not require any bailouts today? Bangladesh and Pakistan has comparable size economies with foreign borders also of comparable length. Pakistan is spending 3-4 times on defense compared to Bangladesh. These are things that do not get corrected by IMF Bailouts, Saudi Aid or Chinese Investment, these are things only Pakistan can fix by getting its priorities right.
Excessive debt even in personal live is a bad idea. IMF is not the solution. We need to increase our tax base. My proposal for the economy is the following:
A. Eliminate the RS5000 and RS1000 currency bills. All the black money will come to the banks.
B. People and businesses will be forced to do transactions using debit or credit cards or use bank checks.
C. All transactions will be reported to the banks and thus it will be subject to taxation.
D. Educate the public regarding the benefits of paying taxes to the government.
E. Country cannot exist unless everyone pays their fair share of taxes.
F. Use technology to educate and collect taxes.
no doubt IMF save us in crucial times but it's our incompetency that we never learn from our mistakes to reform our economic structure. Now the new government is in place let's hope for the best
let Democracy prevail
No but it surely helped past officials.
Pakistan's main problem is the high number of population. As long as something concrete is done about it nothing good will come out of it even if there are ten IMFs.