Pakistan is just one step closer to clinching a new three-year deal with the International Monetary Fund (IMF). This news is something for the government to rejoice about after it was left scratching its head following the Supreme Court verdict in favour of the Pakistan Tehreek-i-Insaf (PTI) in the reserved seats case.
It is a major setback for the current setup as the PTI has become the single largest party in the National Assembly and the Pakistan Muslim League-Nawaz (PML-N) has lost its majority. It has also gained strength in the Punjab as well as Khyber Pakhtunkhwa assemblies. But that has already been discussed and would be pondered on in future editorials.
As for now, let’s stick to the topic. The programme now has to get the nod from the IMF’s Executive Board. It is just a formality, and once this final step is accomplished, the government will succeed in securing a long-term programme, which will bring in a hefty amount of $7 billion over the next three years.
Commenting on the latest development related the IMF deal, Finance Minister Mohammad Aurangzeb said the latest programme would help achieve macroeconomic stability. Prime Minister Shehbaz Sharif’s excitement was also evident with the deal but hoped that it would be the last time Pakistan approached the IMF for a loan.
Pakistan was bound to get the loan since it had fulfilled all the pre-requisites set by the monetary institution. With such tough conditions in place, the citizens are bearing the brunt for the wrong policies of their rulers.
There is no concrete plan to stabilise the economy till now except imposition of new taxes. What is needed is a fresh impetus that would help the economy – not for a short term but for a prolonged period of time. Our stock exchange would definitely be bullish with the latest development but the currency dealers are not very optimistic with the rate.
They are of the view that the IMF would want the dollar rate to increase as it believes that the present exchange rate is managed. Overall, what Pakistan needs is political stability as well as security to give a push to the economy. Our rulers have a great responsibility. They have taken steps that have burdened the masses but at least now they should set policies that are beneficial to the citizens in the long run.
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