The government is parroting the familiar refrain of futile hopes of this being the last International Monetary Fund programme. Similarly, the Fund is banking on structural reforms that its 24 previous programmes have not accomplished.

None of the programmes have brought Pakistan out of the frequent boom and bust cycle. Prior to each bailout, Pakistan enjoys a brief period of economic growth, enters the programme and then the growth stagnates before recovering to a high again, only for the cycle is repeated.

In a recent opinion piece, the IMF Pakistan mission chief said Pakistan’s pace of turnaround is ‘remarkable’. This may be true, given the current macroeconomic stability compared to the recent near default. However, it has been borne on the backs of the working class that sees no relief in sight as the government deepens the tax base instead of widening it.

Published in Dawn, The Business and Finance Weekly, September 30th, 2024