The IMF, after bailing out Pakistan 22 times in the past decades, is not ready to release the bailout package so easily this time. The Fund is looking at the past policy decisions of the nation, which have brought it to the brink of financial collapse. Islamabad’s high spending on its nuclear program remains a stumbling block too. Yet another round of talks between the two for Staff Level Agreement (SLA) has remained inconclusive.
The IMF has imposed some stringent conditions to help Islamabad improve the state of its economy. A cut of 15 per cent in the defence budget and military expenses and abandoning the Long-Range Nuclear Missile Programme are among the five ‘toughest’ conditions laid down by the IMF for Pakistan, New 18 has reported.
The other conditions are international or third-party audit of Chinese loans and CPEC investments, bridging the financing gap from friendly countries and assurance of political stability from opposition leaders.
All these conditions are very difficult for Pakistan to fulfil as it has a history of spending the financial aid it has been receiving from major donor countries or international agencies on its defence budget and its nuclear programme, along with funding terror network operating from Pakistan.
The IMF demand of international or third-party audit of Chinese loans and CPEC investments is also very difficult for Islamabad to fulfil as Chinese loans and investments are all shrouded in mystery. Neither Pakistan nor China has been forthcoming in giving accurate details of the financial dealings between the two.
The IMF condition about assurance of political stability from opposition leaders also does not look feasible amid the ongoing political turmoil in the country. There is continuous political unrest and upheaval as government is hell bent on arresting former PM Imran Khan, whereas Khan’s supporters are violently opposing his arrest. There are clashes and violence across several places in the country as Khan evades imminent arrest.
Pakistan’s Finance Minister Ishaq Dar on Thursday said, Pakistan would not abandon its long-range nuclear missiles. Pointing out the “uncustomary” attitude of the IMF, Dar, while speaking during the special Senate session in front of ambassadors of other nations, said, “Nobody has any right to tell Pakistan what range of missiles it can have and what nuclear weapons it can have. We have to have our own deterrence.”
Dar’s remarks came after coalition partner Pakistan People’s Party’s MP Raza Rabbani questioned the government that the people of Pakistan have a right to know if the country’s nuclear assets are under pressure. Rabbani asked about the IMF conditions and wanted to know whether the delay by the IMF was due to pressure on the country’s nuclear programme or its strategic relationship with China.
News18 reported that during the talks, the IMF team repeatedly asked about the cut in defence budget, talks with Opposition, audit of Chinese financial support and help from friendly countries but the Pakistani team could not satisfy the fund’s queries.
Pakistan needs $6 billion in new loans to bridge the financing gap, but Saudi Arabia, the United Arab Emirates, and Qatar have not yet given these loans despite repeated requests by Pakistan.
Read also:https://indiadiplomacy.in/imran-khan-episode-exposes-fragility-of-pakistans-democracy/
