Bold Talk

Credit Al Jazeera

The International Monetary Fund (IMF) Managing Director Kristalina Georgieva has rendered sagacious advice , seemingly unsolicited, to Pakistan :

  • protect the poor
  • impose taxes on the wealthy
  • function as a country
  • dont get into a dangerous place & restructure debt
  • those making good money, public or private sector, to contribute to the economy
  • fairer distribution of pressures by granting subsidies to the deserving

The MD IMF alongwith broadcaster Deutsche Welle (DW) acknowledged that Pakistan is reeling from colossal economic damage caused to infrastructure and standing crops by floods last year. Under a $ 6.5 billion  programme the South Asian country received a tranche of $1.17 billion last year after a review. Pakistan’s foreign reserves are hovering around $3 billion barely enough to sustain imports for three weeks.Pakistan is awaiting a further tranche from the IMF of $ 1.1 billion to remain afloat for a few weeks or months .

The MD IMF’s advice is not the first time that the institution has rightly rendered such advice to its clients. The client should negotiate with the IMF and another multilateral agencies. The client countries need to build up their economic and financial capacities, prepare meticulously for negotiations and be equipped with evidence and figures . As a contingency or fall back an alternate economic restructuring plan should be drafted in case no arrangement is reached with the Fund.The country’s economists need to draft pragmatic and operational economic strategies instead of looking for appointments in the public glare and issuing platitudes as that approach is sadly obsolete.

By Nadir Mumtaz