The Pakistani government is facing increased pressure from the IMF to meet the requirements of its financial stabilisation programme, agreed in 2008, including the full implementation of a value added tax (VAT) and specific foreign borrowing targets (see Update 71). At the same time, fears over the cost of increased borrowing from IFIs remain evident, with finance minister Abdul Hafeez Shaikh stating that although Pakistan may need a follow up loan from the Fund, “in the long run we have to get rid of the IMF because it’s expensive.” His comments echoed those from the provincial government of Khyber Pakhtunkhwa, which in May rejected a $100 million World Bank loan. A senior official from the provincial finance department said that, “this loan may enlarge fiscal space for the next budget, but the government and people will have to pay a price for it.”
17 June 2010
In the news
The Bretton Woods Project is a UK-based NGO that challenges the World Bank and IMF and promotes alternative approaches. We serve as an information provider, watchdog, networker and advocate. Our flagship publications are the Bretton Woods Observer, a quarterly critical review of developments at the World Bank and IMF, and the Bretton Woods Bulletin, an online update of news and action on the institutions.
The Bretton Woods Project is an ActionAid hosted project (UK registered charity no. 274467).