If they choose to stick to the commitments that former finance minister Hafeez Sheikh gave to the IMF that won approval from the IMF board on March 24, they will have to sharply curb spending, raise power tariffs and fuel prices, increase taxes and roll back the many supports they have been providing to industry ever since the Covid crisis, supports that people in industry have grown accustomed to. The two cannot go hand in hand for very long because the first involves tightening the belt and the latter involves increased spending, so a choice has to be made.Įditorial: The govt can't grow the economy rapidly if it has to implement harsh IMF stabilisation policies
The crossroads has been reached by the resumption of the IMF programme, and the choice the government faces is whether to proceed down the path of deficit reduction as committed to the Fund or chart a course with the coming elections in mind. THE government now finds itself at the crossroads and whatever path it chooses, it will likely create history.
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