Watch an exclusive talk of economist Mr. Zubair on Pakistan’s IMF Program. What will be the challenges and how it will affect our economy?
Recently, the Matrix Magazine got in touch with renowned economist Dr. Zubair to get his opinion on the latest economic developments in Pakistan as well as the government’s decision to opt for a loan from the IMF.
Dr. Zubair opined that the IMF can be approached only when a country is on the brink of bankruptcy and is unable to pay its international debts. Unless these requirements are met, the IMF cannot lend a loan. Addressing the unrest regarding the IMF in the country, he stated that corrective measures are always painful.
He added that the current government had fallen short of enforcing a fiscal discipline and has not negotiated according to the country’s interests.
Dr. Zubair described fiscal deficit as the root cause of the economic crisis. The government is making no attempt to reduce expenditures, he asserted. Moreover, he felt that the economic policies followed during Nawaz Sharif’s era have exacerbated the financial crisis.
Mentioning the figures, he emphasized that the apparent loan obtained will be $6 billion; however $3.8 billion would be deducted from that amount due to the previous loan. Therefore, in reality Pakistan would only be getting $2.2 billion over 3 years.
Talking about the FATF, he affirmed that its conditions are in the interest of Pakistan. The terrorism in Pakistan is a result of terror financing, he said. He concluded that the public pressure on the government is in order to prevent the government from deviating from its objectives.
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