*ISLAMABAD – As the upcoming government of Pakistan Tehrik-e-Insaf (PTI)dwell over whether to approach International Monetary Fund (IMF) or not,experts say that the loan will just not be enough to offset thedeteriorating economic conditions.*
Economic experts have called for ‘bold reforms agenda’ from the upcominggovernment to get Pakistan out of the loan cycle. “Without theimplementation of a bold reforms agenda, neither option will be able towean Pakistan off its addiction to foreign loans to keep its economyafloat,” warned Uzair Younus, director of the South Asia practice atstrategy firm Albright Stonebridge Group, quoted *CNBC*.
Meanwhile, others have objected over Pakistan approaching the US basedlender. Nadeem ul Haque, former deputy chairman of Pakistan’s PlanningCommission and a former IMF senior resident representative, describedPakistan as ‘an IMF addict’ in an article on *Project Syndicate op-ed.*He indicatedhow IMF loans undercut ‘productivity and growth potential by erodinggovernance and state capacity, and creating conditions for ever morerent-seeking and corruption’.
“Alongside distortionary tax policies, the IMF has forced the financeministry into unplanned spending cuts without any real reforms,” he added,which leads to halt public services and infrastructure projects. “New IMFfunding will no doubt lead Khan’s government to repeat past mistakes,”Haque opined.
Meanwhile, Asad Umar, the expected soon-to-be finance minister, has earlierstated that his party’s government will decide on whether to seek a bailoutfrom the IMF or friendly nations such as China by the end of September.