Burdening distressed commoners

The International Monetary Fund’s (IMF) nine-month $3 billion Stand-By Agreement (SBA), to be approved by the executive board hopefully this week, offered Pakistan a desired breather and allayed the fear of default in a troubled economy amid political and judicial turmoil. Businesses heaved a sigh of relief, and the market reacted positively. Should distressed commoners also rejoice the SBA? Sorry, but they can’t. All signs point to more troubles ahead for regular Pakistani families. Prime Minister Shehbaz’s reassurances of shielding households from the vagaries of the IMF’s conditionalities ring hollow when the prior actions, such as the budget revision to fetch the IMF deal, are analysed. After the budget announcement on June 9th, the Fund expressed reservations publicly with Pakistan over revenue measures, spending projections, import restrictions and the amnesty scheme for emitters.