Escaping the IMF

THE International Monetary Fund is getting ready to welcome once again Pakistan into its grasp with a $10 billion loan, and the government is busy preparing a package to avoid this, even though the IMF loan terms were attractive, amounting to $500 million a month, which would be most welcome in this crisis. However, while the IMF might be indeed ready to poke its nose into Pakistan’s business, Pakistan is not so ready, and the decision-makers in Islamabad have probably got in mind the last IMF intervention, which was intrusive and harsh, so they are preparing for a presentation to Cabinet which will weigh borrowing from the IMF, against instead borrowing the $10 billion needed for this financial year from Saudi Arabia and China in the ratio of 6:4. The IMF has already come up with a loan offer, while the Government of Pakistan has yet to approach either Saudi Arabia or China.