ISLAMABAD:The Islamabad Chamber of Commerce and Industry (ICCI) has shown great concerns over the reported tough conditions of IMF for bailout program for Pakistan because if the proposed conditions were implemented, these would plunge the economy into further troubles.
The Chamber called upon the government to avoid tough conditions of the IMF in order to save the economy and the future generations from further problems.
Ahmed Hassan Moughal, President ICCI, has reportedly stressed for further increasing the energy prices and more taxes apart from suggesting many other conditions.
Such tough conditions were not in the larger interest of Pakistan as implementation of them would further enhance cost of doing business, put lot of additional burden on the common man and lead to further slump in business activities and economic growth. Ahmed Hassan Moughal said that an historic analysis of Pakistan’s relationship with IMF shows that IMF programs have not been supportive to put Pakistan on the path of sustainable economic growth.
He said Pakistan’s relationship with IMF had started in 1958 and since then IMF has given 21 loans to Pakistan with a cumulative amount of over $13.7 billion so far, but these loans have not made significant contribution to strengthening the economy of our country.
He said IMF programs have helped Pakistan to maintain a semblance of macroeconomic stability for short periods, but, IMF’s engagement with Pakistan along with World Bank and others has not helped Pakistan to break out of a low growth trap.
Therefore, he stressed that it was essential for the government to conduct a thorough analysis of the impact of IMF programs on our economy and the general masses before finalizing another program with it.
Rafat Farid Senior Vice President and Iftikhar Anwar Sethi Vice President ICCI said that Pakistan was shackled in a vicious cycle of debt trap and debt servicing liability was consuming significant portion of our annual budgets.
They stressed that the government should focus on indigenous ways and means to improve the economy and reduce its heavy reliance on foreign debts which were creating serious balance of payments issues for the country.