Trapped in Loans: Pakistan’s Crisis of Economic Sovereignty
- Tough Conditions and Political Costs
Recent IMF agreements have forced the government to accept harsh terms, resulting in politically costly economic decisions. - Growth Sacrificed for Revenue
Pakistan’s budget focuses on increasing taxes instead of promoting growth and exports, hurting long-term sustainability. - Exchange Rate and Inflation Crisis
Floating exchange rates and expensive energy reforms have triggered inflation and forced many industries to shut down. - Pressure on the Agriculture Sector
The IMF has discouraged price support for key crops like wheat and cotton, impacting farmers and rural economies. - Relief Denied to the Poor
Subsidies and welfare relief measures now require IMF approval, leaving low-income groups with minimal protection.
Summary:
Pakistan’s continued reliance on the IMF is severely undermining its economic sovereignty. With the 24th bailout package in progress, stricter conditions are being enforced that are weakening industrial output, hurting exports, and increasing unemployment. The IMF’s influence now extends from tax policies to fuel prices and even agricultural decisions. Inflation is rising, and poverty is worsening. A comprehensive, self-reliant economic policy focused on exports, industrial development, and job creation is urgently needed to break free from the cycle of debt and dependency.
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