Re: Say what you will about PML they can handle basic economics
Depends on the fiscal strength, and corruption level of that country. For a country like Pakistan, IMF comes in armed with a long list of pre-reqs…and none of our governments have been clean enough to be able to resist those requirements.
From what I know of the IMF agreement of last year, the govt was not able to negotiate on the interest rate. IMF asked for a 30% increase in domestic power tariff, and PMLN went the extra mile and increased it by almost 80%. IMF asked for increased taxation. PMLN went ahead and increased GST instead of broadening tax net. IMF asked for currency purchase, and State Bank promptly bought more than a hundred million dollars from the open market, creating an artificial dearth of USD, and spiking the rate to 108…the same rate which they are taking credit for having brought back down.