Article Type

Article

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Pakistan borrowed nearly $8 billion from the IMF under its standby facility during 2008 and began repayments in 2011. The amount together with interest must be repaid by end 2014 — almost $5bn must be paid between March 2013 and end 2014.

A debate is raging between those who believe there is no alternative to entering a fresh programme with the Fund — standby or the Extended Fund Facility — and others who want to shun the IMF. To the former, the short-term liquidity situation leaves little choice.

Others believe the new government’s room for maneuverability will be constricted by the terms of agreement. To them, burdening the new government so heavily from the start seems unfair, as the price of the economy’s neglect is seen as being extracted from those who were not responsible. As someone who is familiar with the IMF from both the lender’s and borrower’s side one can advise a dispassionate and objective analysis and a realistic assessment of the options available before a decision is made.

Publication Source

Dawn

Publication Date

5-24-2013

Pages

1-3

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