IMO, this is a very positive developing trend; we need to get out of the IMF and other foreign donors trap…
ISLAMABAD (October 20 2005): Pakistan has rejected International Monetary Fund’s (IMF) offer to enter into its ‘Post-Programmes Monitoring Facility’, saying that it did not need any guidelines for framing the future economic policies.
Sources said that IMF had made the offer some time back to provide Pakistan its professionals’ assistance to give guidelines to frame its economic policies and monitor their outcome in the coming years.
IMF has devised the Post-Programmes Monitoring Facility for those countries which get out of its programmes and do not receive any direct or indirect financial assistance or loans for its programmes, but seek its monitoring for economic programmes and policy work.
The policy makers in Islamabad believe that the programme provides the Fund an opening to keep on dictating its terms.
They quoted Indonesia’s case in support of their views that the government’s decision of not entering into the monitoring facility was correct and it would give them a free hand to frame economic policies that suit the country well.
Keeping in view the same strategy towards, Pakistan had also turned down IMF offer early for soft loan under its Emergency Programme for rehabilitation and reconstruction of earthquake-hit areas.
Sources said that in response to the offer for soft loan, Islamabad made it clear to the Fund team that visited Pakistan recently that it does not want loans even free of interest for rehabilitation of affected people and reconstruction of devastated areas.
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Re: Pakistan rejects IMF...
Shukar hai, AlhamdouLillah.
Re: Pakistan rejects IMF...
rejected "free of interest loan"? why?
Re: Pakistan rejects IMF...
^ so the power stays in the hands of pakistan and not the IMF. THis way they don't end up making the policies for pakistan.
Re: Pakistan rejects IMF…
Nothing’s as it seems. Those devils always have hidden agendas.
Re: Pakistan rejects IMF…
when you are getting a loan for certain project, they can’t dictate policy on other projects (IMO), this was a ‘welfare’ project how bad a policy can they dictate in this case?
Re: Pakistan rejects IMF...
I think it can be a good thing, IMF experts providing advise and support to help make sure that the country stays on teh right track and there is transparency in its financial dealings internally and externally.
While people have grievances towards IMF..real and imagined, i dont know for sure how much the refusal of their offer to help is for the sake of control and how much it is for the sake of not having someone look over your shoulder while you do what you want :)
IMF in a post program mode has no vote and no say on what you do, they serve as consultants and advisors.
Re: Pakistan rejects IMF...
About time.
I wish Pakistan good luck, success and the strongest economy in the world WITHOUT the support of IMF or any sh!t from other financial institutions. I wish it become self sufficient but each individual will have to work for it.
Re: Pakistan rejects IMF...
Fraudia ji, I see where you are coming from, and you have raised a very valid point. However, IMF is known to have wrecked countries financially. Now, if the IBRD(World bank), was giving advises, councelling, that would be different. We have to understand that main difference b/w the two. IMF, is an institution, which gives loans on high mark up's, and then forces the countries to adopt extremely aggressive fiscal policies, which in most cases only hurt the people and their respective country's economic policies(South America is filled with such examples). It reminds me of Buy here, Pay here car lots in the U.S. On the other hand IBRD, is a part of the United Nations, and is not as agressive in dealing with its clients as the IMF.
Re: Pakistan rejects IMF...
this is indeed a positive step for pak. latin america is packed with examples of wat "damage" IMF policies have lead to.