THIS is with reference to the report `Govt unhappy as IMF `shifts the goalposts`` (Match 1). It is pertinent to recall why was the International Monetary Fund (IMF) established in the first place. The purpose was to assist poor nations to pay back their loans,and to help them build up their respective economies so that they may become self-sufficient, and may not need to take any further loans.
But wait. Or was it formed to burden the poor nations so that they may pay their loans only with more loans, and to ensure that they remain poor indefinitely? In Pakistan`s case, the later purpose appears to be in effect. The harsh conditions being imposed on Pakist an will never enable it to build up its economy and the only means of paying back its loans will be to ask for more loans.
This is a vicious cycle. We have been caught up in this cycle for years, and, by the looks of it, things are not going to change anytime in the future. The IMF keeps making sure that the status quo prevails.
Asking Pakistan to raise the rates of electricity, gas and petrol will render the local industry unable to produce exportable items at competitive rates, thus bringing down the level of exports, the only practical means of strengthening the economy.
