Prime Minister Nawaz Sharif has brushed aside the idea of another loan programme with the International Monetary Fund which has cleared a final payment of $102 million tranche to Pakistan as part of a $6.4 billion three-year extended facility plan started in 2013. According to the prime minister, the country is ready to move forward without any further support. The Pakistani government and the fund officials have completed twelfth and final review in Dubai, in which a satisfaction was expressed on the economic progress of the country. The chief of the IMF hopes that due to robust construction activities, private sector credit growth and progress in projects related to the China Pakistan Economic Corridor, the country will achieve five percent growth to its gross domestic product during the financial year 2016-17. The work on the CPEC can bring a revolution in the construction industry involving projects worth $46 billion.
Taking the credit of the course of its programme, the fund claims that Pakistan’s economy has made significant progress as it has achieved macroeconomic stability, which will pave the way for higher, sustainable and inclusive growth. However, despite taking credit of the financial stability of the country, the falling exports and reforms in the power distribution company remain an area of concern for the agency. On another note, a little progress has been made to sell the loss-making organizations which have turned into liabilities rather than assets. The process of privatization is facing various political and legal challenges and the government seems in no hurry to resolve the issues. According to experts, corruption and mismanagement are going on in full gear in the public sector organizations and the chief of the national carrier has expressed his inability to control the affairs of his organizations to which he is paid for. The situation in the Pakistan Steel and other organizations is also not different which consumes billions of rupees hard earned money per year.
According to the prime minister, the country is able to stand on its own feet economically and the government will not seek another IMF programme. However, sooner the government understands the situation the better. If loans are necessary, their judicious use is also important and needs strict vigilance. The nation should be told who bears the expenses of talks in Dubai which would be probably in millions of dollars. Why talks cannot be held in Pakistan is a big question before the political leadership. The government should also tell the nation where the loan amount has been spent during the last three years. We as a nation are not destined to be poor and efforts must be made to rid the country of the foreign loans.
