Comment :New finance minister must think beyond IMF

The new finance minister must not pin all hopes on the IMF. The new finance minister must reassess Pakistan’s relationship with the IMF. The new finance minister must recognize that the IMF is not a benevolent entity tasked with solving Pakistan’s economic woes.

The IMF’s primary function, as outlined in its Articles of Agreement, is the promotion of international monetary cooperation -- not resolution of Pakistan’s economic issues. The new finance minister must not expect the IMF to provide sustainable solutions for our economic problems.

The IMF has one-size-fits-all solutions. These solutions always revolve around measures such as tax hikes, tariff increases on essential services like electricity, and stringent austerity measures imposed on the government. Despite Pakistan’s long history of engagement with the IMF, spanning 74 years and encompassing 24 different ‘arrangements,’ the effectiveness of these programs has been questionable. Instead of yielding sustainable outcomes, our recurrent reliance on IMF loans has perpetuated a cycle of debt, wherein new loans are sought primarily to service existing ones, rather than fostering genuine economic progress.

The IMF’s 78-year history is marked by interventions that helped member states navigate economic crises. To be certain, these interventions have never ever fostered long-term economic robustness. Here are a few countries where IMF programs have unequivocally failed: Argentina, Zimbabwe, Greece, Ecuador, Ukraine, Venezuela, Nigeria and Jamaica. Yes, the IMF provides valuable support, the new finance minister must recognize that lasting solutions can only come out of homegrown economic strategies.

Pakistan’s economic future hinges on the new finance minister’s ability to champion homegrown solutions tailored to our specific challenges. Here are five key areas for focus: (1) Resolving energy-sector Inefficiencies; (2) Privatization of State-Owned Enterprises; (3) Enhancing agricultural productivity; (4) Boosting the IT and knowledge economy; and (5) Deregulation, reducing red tape and business environment reforms.

The new finance minister must end blind reliance on external solutions. Pakistan’s economic destiny lies in the hands of its own leadership. The new finance minister must forge a new path. By implementing these homegrown solutions – from tackling energy inefficiencies to fostering innovation – the new finance minister can break the cycle of debt and usher in a new era of sustainable prosperity

This bold approach demands courage and vision, but the reward is a future where Pakistan charts its course to economic success. Let us rise to the challenge and build an economy as resilient and dynamic as the Pakistani spirit itself.