Tuesday May 28, 2024

Debt trap

By News Desk
April 24, 2024
Debt trap

Pakistan is expected to receive yet another loan package from the IMF. The IMF presents itself as an organization that helps save countries from financial crises but their loans, in many cases, have trapped countries in a debt cycle they find themselves unable to escape. This cycle also stifles economic growth and development.

Some economists have warned that IMF loans often worsen economic downturns and deepen poverty in developing countries. Pakistan should aim to reduce its engagement with the IMF. Instead, the country should focus on reducing its current account deficit.

Muhammad Zarar