Although our authorities do not admit it, the IMF actually controls the value of our rupee, which ordinarily should closely reflect the state of our economy. But most of our economy is undocumented, so the value of the rupee has to be determined largely by conjecture and speculation.
Unfortunately, the make up of the international economic framework is such that a country that is indebted to the economic powers and IFIs cannot have any economic independence. Similarly, we are also under the influence of the IMF. and it is deepening its hold on us with every passing day.
The IMF, because it does not actually want to fathom the real depth of our economy, is always assuming that we Pakistanis must be consuming more than we should. Therefor,e it is continuously forcing our government to impose more and more taxes and effect devaluation at frequent intervals.
Our government has no choice but to obey because the power to downgrade the credit rating lies with the IMF. As such, it has been observed that with every change of our government, there is usually a 50 percent decrease in our rupee value. In the case of the current government it has come down from the original Rs 60 per dollar to Rs 90 to this date. This devaluation has very adverse effects on Pakistan’s economy especially its foreign exchnage resreves, its balance of payments and its real GDP growth rate.
The IMF’s stringent policies with regards to Pakistan are not doing the Pakistan economy any favours. We mus become self-sustainable and try to cut ourself loose from this international bully if we want to develop an independent economic policy that is in our national interest.
SHABIR AHMAD
Muzaffargarh
