Friday, March 31, 2023

Role of IMF in Pakistan Economy and Why does every administration seek its assistance?

Role of IMF in Pakistan Economy

IMF plays a role of an elite neglectful parent. A parent who gives money blindly to its child. Without considering its social health or offering a workable solution. Additionally, plays an immense role in corrupting the child. Pakistan always takes asylum in IMF’s lap when unable to manage finances. On the other hand, it does not invest the taken debt wisely.

As far the economic assistance is concerned according to TRT media Pakistan took debt from IMF 21 times since 1958. Every government took loan from IMF to stabilize country economic condition. God knows who has utilized how much for the country. IMF plays a very important role because Pakistan need IMF help from time to time.

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Which Government has taken debt, and How much?

Sadly, from Ayub Khan to Zulfiqar Ali Bhutto, and from Yousaf Raza Gillani to Imran Khan each government prostrate in front of IMF. Following is the stats of debt rate:

Debt in Ayoub Khan’s Reign from IMF:

1958 – US $25,000,000

1959 – US $37, 500, 00

1965 – US $75,000,000

Zulfiqar Ali Bhutto:

1972 – US $84,000,000

1973 – US $ 75,000,000

1974 – US $ 75,000,000

1980 – US $ 349,000,000

1980 – US $ 730,000,000

Benazir Government:

1988 – US $ 194,480,000

1988 – US $ 382,410,000

1993 – US $ 88,000,000

1993 – US $ 123,200,000

1994 – US $ 172,200,000

1995 – US $ 294,690,000

Sharif Government:

1997 – US $ 265,370,000

1973 – US $ 113,740,000

Gillani Government:

2008 – US $ 7.6 billion

Khan Government:

2009 – US $ 1 billion

Why every government does needs IMF assistance to manage the country economically?

As per the listened and repeatedly heard stories, Pakistan is a so-called third world under-developed country. Additionally, it has little or no resources to run Pakistan economically. Hence, following are the reasons to get economic assistance from IMF:

  1. To stabilize the deteriorating condition of Pakistan
  2. To pay off the imports

As per the TRT media, Pakistan pays $60 billion in import while export products and services are of only $23.22 billion.

Imports of Pakistan:

Unfortunately, due to lack of indigenous machinery and up to mark tools Pakistan imports a lot of things. The fuel, petrol and oil which you use in domestic life as well as to run your automobiles are imported. Not only this, the automobiles which are used on daily basis are also imported. Additionally, the toy without which our lives are impossible, incomplete and sad comes under the list of imported products. Correctly guessed, phones are imported too.

Not only is this but here a list of imported materials including: medicines and beauty products, oils, plastics, chemicals, machinery and the list goes on. To pay of all these products Pakistan takes assistance from IMF.

Exports of Pakistan:

Pakistan exports fruits and vegetables, raw clothing including textiles and cotton, leather products, cereals and optical etc. The revenue which is generated from these exports only benefit country’s economy to the certain extent, and hence, Pakistan takes asylum in IMF’s funds to run the country.

Practical Solution to Overcome Pakistan’s Economic Dependency on IMF:

  1. Impart Skilled Based Learning:

Unfortunately, even in the 21st century most often cramming culture is practiced in Pakistan. Students remain unable to read even after matric. It is a real alarming situation. If Pakistan really wants to grow as a nation it is quite necessary to break the traditional shackles of cramming. Additionally, skill based learning with proper practical’s should be imparted. Also, exposure to the field could flavor more the learning. For instance; if a student want to be a doctor, it is essential to have his/her contact with some professional, so he/she would be able to understand things closely. For that matter, encourage student to work as a doctor assistant in part time. This small tip can surely liberate Pakistan from the shackles of IMF.

  1.  Own Your Native Language:

How can we flourish as a nation when we feel shame in owning our mother language? The importance of English language is undeniable. Even, in the current scenario one needs to compel oneself to learn Chinese, but, No other language can give you the respect and dignity that your own language can give you.

For better economy having a clear identity is quite important. Owning a language is a part of identity. Think upon it!

  1. Make Coding a Game:

Developed countries have keen interest in technology. They make their children go through codes even in very beginning. Alhamdulillah, Pakistani youth is blessed with the great talents. It is need of time that every person have at least basic know how about coding world as it is predicted AI will replace human beings. Hence, it is very necessary to have ample knowledge about tech world. Surely, the knowledge of today could be the survival tip for tomorrow۔

The world of tech will surely boosts Pakistan’s economy.

  1. Self-Actualization:

Last but obviously not least is self-actualization. Theologists have used this term for a sufi concept “khudi” but this article takes it in meanings of honesty, punctuality and self-responsibility. These characteristics will surely help you to play a significant role to stabilize Pakistan’s economy.

Summing up the discussion, Pakistan needs shoulder of IMF to balance its economy. No government, invest the debts wisely and pushed Pakistan in the pit of poverty. No one from outside will come and think about betterment of Pakistan. You are the one that can make Pakistan a better state that can survive without IMF. Only you (Pakistani Youth) have power to make Pakistan liberate from the shackles of IMF. Also, believe in Quaid’s words: you are second to none, and Pakistan has come to stay. So, work hard and shine!

Role of IMF in Pakistan Economy

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Bushra Luqman
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