Pakistan’s Economic Blindspot
Title: Pakistan’s Economic Blindspot. Introduction: On July 12, the International Monetary Fund (IMF) approved a bailout package worth $3 billion for Pakistan. The first half of this year brimmed over with apprehensions, and predictions of Pakistan defaulting on its debt. While the IMF deal has ensured that Pakistan avoids default, at least for the time being, it unleashed a familiar vicious cycle, one that has been repeated a couple of dozen times throughout the country’s history. Parties disconnection: This time around, however, the magnitude of the political variables engulfing the oft-regurgitated fiscal cycle is in stark contrast to what has transpired in the recent past. The usual five-year circle begins with a newly elected government agreeing to an IMF plan, completing it in the first three years, and then derailing it with populist measures in the lead-up to the next election. The latest IMF program, instead, will be implemented by possibly thre...
