Prime Minister Shehbaz Sharif is resolutely determined to free Pakistan from the cycle of external loans and International Monetary Fund (IMF) programs. He aims to eliminate the country’s reliance on the IMF, which has provided billions of dollars over the years with stringent conditions that many believe have crippled the economy and caused hardships for ordinary Pakistanis.
Addressing a meeting at the Federal Board of Revenue, the Prime Minister emphasized the importance of considering the current IMF program as the final one. “If we want to get rid of loans, we need to consider this IMF programme as the final one. Now is the time; it is our responsibility to act speedily and work tirelessly. Only then will this be the final IMF programme in this country,” he stated.
Shehbaz expressed his distress over Pakistan’s need to seek loans from the World Bank and other institutions despite generating significant revenue. “We collect billions, trillions and we’re still going to the World Bank and others. A country cannot run like this,” he lamented.
His statement followed the announcement of a three-year $7 billion aid package deal with the IMF, which is expected to stabilize the economy and foster inclusive growth. However, critics argue that the IMF’s conditions often hinder economic progress and exacerbate hardships.
The IMF’s reforms are seen by many as veiled instruments of economic control, perpetuating a form of neo-colonialism where powerful states maintain dominance through financial aid. Historical examples show leaders in the Global South who resisted such dominance faced severe consequences, while countries like Cuba and Venezuela suffered under harsh sanctions for opposing neoliberal policies.
Latin America’s experience with IMF-driven structural adjustments highlights the detrimental effects of deregulation, privatization, and public service cuts, which led to stagnated growth and increased inequality. In contrast, protectionist measures previously promoted substantial economic growth and improved living standards.
To truly break free from IMF dependency, Pakistan must implement significant reforms: reducing non-development expenditures, eliminating subsidies for the elite, restricting luxury imports, and imposing market-value-based taxes on real estate. Curtailing lavish spending on federal ministries and MNA development funds could also aid in achieving financial independence. These steps are essential for the country’s sustainable economic growth and stability.
