IMF’s conditionalities
To avail the much-awaited $7 billion IMF bailout, which would only sustain us until June-July, the government is struggling in its quest to obtain the loan while having to comply with IMF conditions.
In a recent press conference, Dar announced tough decisions, including an additional Rs170/180 billion tax in revenue, a second 12.5% hike in petrol prices in a month, a further climb in GST, and a raised interest rate of 18%. However, these decisions, made to appease the IMF, will only elongate the rift between the rich and poor in an already economically decoupled society.
For instance, there were long queues at Tim Hortons to snatch a Rs 900 coffee, while blue-collar workers in the country can hardly earn Rs 700 in wages, and the poor are giving up their lives for a bag of flour.
According to IMF and World Bank reports, our economy will follow a downward trend. Regrettably, our politicians, elites, and bureaucrats are not constraining their expenditures on luxuries and their obesity with an open palm is only burdening the exchequer. On the other hand, they are imposing ridiculous economic measures on the poor. At the very least, policymakers should come up with decisions to minimize the burning effects of inflation on the middle and lower-middle class.
