IMF loan: The takeover of Pakistan

A stockbroker points out the latest share prices on a screen during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on August 26, 2019. (photo by AFP)

Pakistan, a nation full of potentials both in culture and economy, has been facing serious challenges in the past 30 years and its economy is not even close to reach its full potential. 

As a result, Pakistan’s economic future is at a crossroads. Past large deficits, the high cost to buy a rupee, and the lack of reforms have undermined growth.

In an attempt to restore strong and sustainable growth, Pakistani government has received a loan from the International Monetary Fund (IFM). The IMF wants Pakistan to increase the proportion of its people who pay taxes and for the government to reduce public debt.

Many say most of those targeted by new reforms are the poor or the struggling sector. 
The government along with the IMF believes that increase of taxation can have a good outcome if Pakistan manages to have a significant increase in resources allocated to key social assistance programs, supports measures for the economic empowerment of women, and invests in areas where poverty is high.

The IMF's conditions are money-related on the paper, but there are other changes that make people think the organization is taking over their world. 
Pakistani officials have revealed that a former IMF mission named Reza Baqir has been appointed as the governor of the State Bank of Pakistan. 

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