Faced with huge fiscal holes and shortfalls of key economic targets in the fiscal year 2011-12, it appears that the government has no other option but to go to the IMF for financial assistance. The IMF does not grant blanket approval to loans – its approval process needs several critical analyses, and is always tagged with reform conditions, which the country has to meet within a specified time period. The conditions imposed by the IMF in the past had prescribed a bit of reforms. But this time, reforms could go beyond enhancing the tax-to-GDP ratio and seeking the autonomous status of the State Bank of Pakistan. In my opinion, in order to make reform more meaningful, the reform agenda should cover a wide range of interconnected economic issues which are impeding the growth process and enlarging the poverty headcount. If reform bears fruit in terms of improving the living standards of people and providing them with job opportunities, the credibility of the IMF and government might actually go upward. However, in order to develop consensus on the intended reform package, and to make it actionable, broader consultation with stakeholders including economists and representatives of taxpayers and civil society etc is critical. Monetary and fiscal policies go hand in hand. Any change in the monetary policy has impacts on fiscal policies and vice-versa. We require both austerity measures and growth.