Why is IMF blaming previous Govts for current economic situation in Pakistan.

[AZ1]

Post this ib every media anchors account, youtube channels.

 

[VCheng]

I am just an observer and know little of the internal churn process for Pakistan.

But to me there is a limit threshold (for insulation/extreme autarky) if one has deployed large sensory network externally and is also quite reliant on it for lot of bread/butter stuff. It would need a huge amount of energy invested (over considerable period of time) to undo the current momentum framework....that I am sure the forces that be (inside Pakistan) would rather invest other places first (if their continued intent is more status quo) to begin with given economy of effort. Whereas you look at North Korea and they have neither a tier-1 country (forget multiple ones by virtue of shared colonial history and elite common language etc) to deploy their emigrants to for decades...nor do they have a close-by labour-pull source replete with oil money like GCC-Pakistan relationship. Thus they have a very different scale of autarky all together complete with monolith personal dynasty/godhead running it (unthinkable to Pakistani culture in broad terms given the broader faith structure in Pakistan that vests itself above all human imperfection). As to what scale of that Pakistan can achieve...I dunno, depends how you measure it I suppose...lets see. I think Pakistan can reform and get out of this mess if it put its mind to it....rather than face revolution or extreme regression.

BTW what would you say are the traditional axes anyway? I just did a long winded dimensional analysis with an associate of mine purely for debate exercise...and I was surprised by my own clarity of thought on the matter (what dimensions even are) more broadly.

Lemme chew on that for a bit. Interesting thoughts.

 

[That Guy]

In start IMF programs in Pakistan were of a year and then they started to go long term. Now about reforms. Reforms have been implented or not is a different issue that we will discuss later first tell me what the core problem with Pakistan's evonomy?

The core problems with the economy is the massive deficit, which is eating away at Pakistan's potential. Why does it exist? Terrible tax policies, poorly thought out subsidies, a lack of focus on exports, and extremely poorly thought out trade agreements...among other major issues, such as the energy issues, which still haven't been properly resolved yet, and are going to get worse within the next 10 years.

Reforms are very much relevant to this, as properly implemented reforms that increase the tax base and tax collection, increase exports, and targeted energy policies should be the main focus. Closing the national budget deficit, and balancing the budget should be priority number 1; that's not to say that balancing rhe budget should be done at all cost, and even the IMF has cautioned against cutting social programs, but making cuts where possible is a must, as well as increasing revenue streams.

The reason why IMF policy demands have gotten longer is because the situation has gotten more complicated in Pakistan, and will require more long term fixes, which is the only way to put Pakistan's economy back on track.

Both Ishaq Dar and Asad Umer were correct when they said that Pakistan's economy was stabilized, but stability isn't enough, especially if it's built upon an artificially inflated economy, like it was during Ishaq Dar's charge.

The economy right now is stable, but without reform, such as increase the tax base, and rewriting the tax policy to be more uniform across Pakistan, as well as focusing on exports and trade, the stability that Pakistan got from the loans from KSA, China and IMF will be meaningless.

 

[nahtanbob]

Eh, it depends on the leadership, and political will. The IMF always does a risk assessment, before handing out loans.

imf is like a bank. if the debtors do not pay back the bank the bank has no money

 

[That Guy]

imf is like a bank. if the debtors do not pay back the bank the bank has no money

It's also a financial institution meant to give lower income nations an opportunity to build up their economies. It's not as profit driven as you may think. To treat it like a normal bank is not wise.

 

[nahtanbob]

It's also a financial institution meant to give lower income nations an opportunity to build up their economies. It's not as profit driven as you may think. To treat it like a normal bank is not wise.

there is some truth to what you say. there is no profit motive. But the lending capital is a function of the money collected from prior loans

 

[Manidabest]

Lol, we, Pakistanis, are so used to of disobeying, that your post didn't surprise me...no offense. Internationally things doesn't work this way. Pakistan does that and then get dragged in international courts, and instead paying most likely 3 times what it should pay now. Plus the reputation, nobody is going to lend you money after this.

Besides, who elected those leaders? I bet after a decade Pakistanis will be blaming "army" of installing IK govt. There is always a bogeyman.

well what i said was an unlikely scenerio but one can take those nations too court who give asylum to known corrupt people

 

[BHarwana]

https://twitter.com/x/status/1130857397524680707