Wednesday July 06, 2022

Loans and sovereignty

June 24, 2022

This refers to the editorial ‘Close to a deal’ (June 24). It has aptly discussed the past and present economic situation of the country and the IMF’s consent to extend us a loan facility that will also help Pakistan get billions of dollars from China and Saudi Arabia. Such financial aid will increase our reserves, stop the flight of dollars and stabilize the rupee. It is no more a secret that this approval by the IMF has been given after the US gave a green signal. In February this year, Imran Khan signed a deal with the IMF and then broke the agreement, resulting in a sudden rise in the dollar rate. Imran Khan must answer why he landed Pakistan into this condition. It is because of his wrong policies that we have got stuck in this mess.

Economists believe that once we receive financial aid from the US, our rupee will appreciate, but what about the damage that has been done? The government, however, must understand that its heavy reliance on the US is not good. It should work towards becoming a financially independent nation.

Mukhtar Ahmed