IMF misses the mark yet again

As per the Fund’s traditional approach, the programme is grounded in a basic accounting and meaningless framework that relies on a cash-based system to achieve a magical number for primary surplus (or deficit), all the while ignoring the structural problems of the country. At best, lip service is paid to reforms. Despite all the celebrations, let us not forget that we are in a low-investment, low-growth, and low-export trap. Sadly, the IMF has once again missed the opportunity to address Pakistan’s structural problems. The programme essentially rolls over existing liabilities to the IMF and other creditors without any real reform. Most programmes have been doing so without addressing the real issues. How Chinese lenders are treated also appears to be out of the ordinary, with the finance ministry still looking for ‘re-profiling’ — essentially restructuring bilateral debt.