Sliding popularity of IMF
IMF can restore its reputation by providing soft loan to Pakistan
Islamabad: Pakistan Economy Watch has said that the popularity if International Monetary Fund (IMF) is as low as a snake in the grass and it should modify its policies to increase level of acceptance. The popularity of fund established in 1945 is at all time low. Lack of customers has put its own existence in jeopardy. It’s high time for international lenders and IMF to reconsider their policies often blamed for enhancing poverty and gap between rich and poor, said Dr. Murtaza Mughal, President, Pakistan Economy Watch.
Currently only Turkey was accepting IMF programme and Georgia had no other option after war with Russia. This is because of the perception that the policies of IMF were behind 68 ruined economies in the world.
IMF, WB, ABD striving to keep majority poor
Dr. Murtaza Mughal said that record shows that the ‘recommendations and dictations’ of international lenders have increased poverty, illiteracy, diseases and infant deaths across the globe. Currently 600000 children dies every year due to abject poverty partly to be blamed on developed world and international lenders.
“IMF will force a country for privatization, so-called structural adjustments, devaluation of currency, cutting health and educational expenditures, impose higher interest rates, lift protection and slashing subsidies which destroys the fabric of society, industry, agriculture, FDI, Balance of Payments, developmental goals and current account balance,” said Dr. Murtaza Mughal.
He said this lender bas become a US tool to keep underdogs deprived. It uses attractive economic terms to lure people and governments into traps. “International Monetary Fund, World Bank and other mega banks could be termed a doctor who never helped a patient survive,” said Dr. Murtaza Mughal.
Whole world is now avoiding any deal with the lender
These institutions are also behind irresponsible lending that only promotes corruption and the masses are ultimate sufferers. “Lenders prefer to fund dictators and corrupt rulers,” he added.
The situation has reached to an extent that only failing states would deal with IMF. Pakistan is ready to swallow any bitter pill but would not like to step into any of the lender’s programmers. President, Chairman of PPP Asif Zardari in his first speech clearly said that Pakistan will not opt for an IMP programme. If Government failed to arrange money from alternative sources, it would be unfortunate.
Like the IMF and World Bank, the Asian Development Bank has also fallen under much criticism for its policies that require structural adjustments for loans. ADB it encourages export-driven, capital and resource-intensive development. The largest financing and influence of the bank comes from Japan and the United States.
In this scenario, said, Dr. Murtaza Mughal, IMF and other lenders should change policy and provide soft loans to Pakistan and other poor countries without dictating their policies to improve its deteriorating image. Without it, IMF will be left with no reason of existence.
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It should have lost its popularity along time ago..