Professor Adnan Khan, Chief Economist at the Foreign, Commonwealth and Development Office (FCDO) of the UK in a recent statement to the Pakistan media is reported to have stated that “A normal country does not need an International Monetary Fund programme but Pakistan’s next few years seem difficult without its support, considering that, the country’s economic needs are much bigger than the potential size of any bailout that the global lender could offer”.
He further adds that Pakistan’s tax system is unjust as the poorest 10% of citizens were paying a larger share of their income in taxes than the richest 10% and that Pakistan should opt for foreign investment only in the export-related sectors and barring any investment channeled into the power sector.
Pakistan going for its 24th IMF program in its short history of 75 years is a reality that perhaps classifies the country as ‘not a normal country’.
Professor Adnan Khan echoed and concurred with the severity of concerns expressed by other noted economists and the global lenders, notably, the IMF and World Bank.
A new IMF programme that could offer $6 billion in three years against the requirement of $75 billion does not cover the need of the nation. The investments in the power generation had been reckless without considering the supply and demand mapping and its cost impact on the consumer. Today, the country has an installed base of 46,000 MW of which more than half is idle - as there are no takers.
As the talks between the finance managers of Pakistan and officials of IMF move on for a much bigger........