The terrible role of IMF By DR NIAZ AHMED KHAN

ARTICLE (April 30 2010): It is a bitter reality that one has to surrender to conditions of one's lender, no matter how cruel these conditions are. Same is the case with Pakistan as the international lenders, like the IMF and World Bank, have forced it to yield to the conditions of their choice, thus leaving no option for it to escape.

And now the price of this is being paid by the 170 million people of Pakistan, who arc groaning under the burden of ever-increasing price hike, unemployment, loadshedding and poverty, while suicide bombings, worst law and order situation and energy crisis have made their lives absolutely insecure.

Pakistan is trapped in shape of foreign loans so badly that it has to beg the IMF, World Banks, ADB, US and Friends of Democratic Pakistan (FoDP) for funds (for loans) to run its financial affairs at home. The government gets loans, but ignores the fact that what price it is paying to the lenders in terms of humiliating conditions and compromise on national interests. Through loans they are making next Pakistani generations their "financial slaves".

This is the height of our government's helplessness that Prime Minister Syed Yousuf Raza Gilani most recent had admitted that they had to take tough decisions on the pressure of international financial institutions (IFIs) and he knew that the masses were lacing difficulties due to these decisions. It is a point of extreme regret that the prime minister has no vision to realise the ground realities of the poor masses whose life is getting worst with the every passing day.

With the start of the year 2010, the government had jacked up gas, power and petrol prices. So far the power prices have been raised up to 24 percent with the caution that next year the same would go up by fifty percent. This does not end here as the slapping of value-added tax (VAT) is being considered, and the IMF has already warned to halt the remaining loan instalment in case the VAT is delayed.

Subsequently, now the provincial governments would have to make laws regarding taxation and have to be accountable to not only the federal government, but also the IMF regarding their income and income sources. The power tariff raise has triggered the cost production of a number of various commodities thus further putting the financial burden on the poor masses.

But the IMF has no interest with all these miseries of the poor people of Pakistan, as it is interested only its loans and the interest on them. The energy crisis has led to closure of thousands of industrial units and many more thousands are going to close due to the excessive power outages, but the government, being oblivious to this crisis, is regularly raising tariffs of national utilities on the instructions of the IMF.

There arises a big question as to whether the IMF and other IFIs are putting pressure on the government only to the extent of raising power rates, withdrawal of various subsidies and imposition of more taxes? Of course, not. They are regularly interfering into Pakistan's foreign policy and are now manoeuvring to limit our defence capabilities, including excess to our nuclear assets.

The sane Pakistanis can well imagine what motives the IMF has behind making Pakistan financially dependent on it. This is also a bitter reality that the government has no escape from the trap the IMF has made in the shape of financial loans coupled with tough conditions.

Total foreign loans have made a major jump of $12.12 billion from the earlier around $43 billion. It means that every Pakistani owes around Rs 27,000 to the IFIs. Pakistan owes $7.5 billion to the IMF alone. And now the humiliating conditions the IMF has attached for more loans would never be acceptable to an independent state. Even poverty and hunger stricken states like Sudan and Haiti would never accept these conditions.

"Now what is the solution to this financial crisis" is a question, which is haunting every patriotic Pakistani. This is also a fact that when there are problems, the Nature bestows a lot of qualities to human kind to solve them. Pakistan, no doubt, can get freed from the clutches of the IMF and other major lenders, but this requires of the Pakistani leadership and the people to adopt a pragmatic approach.

Pakistan is rich in almost all natural resources as well as skilled manpower. We are a nuclear power...we have capability to make satellites and send them into space. So what is the reason of surrendering to the IMF and other IFIs when we are self-sufficient and independent state? Why do we celebrate the approval of Kerry-Lugar Bill like laws? How long we continue compromising our national interests for getting paltry foreign loans?

It is a biting reality that only a hungry person raises begging bowl. Similarly, a hunger-stricken state has to comprise its sovereignty and make its friends as masters to get loans from them. I like every Pakistani, wish that the begging bowl be broken forever, hut the increasing volume of foreign loans indicates that size of the begging bowl has abnormally increased. This pathetic situation forces one to ponder what bigger sized pot the government will use for begging more loans if the volume of current foreign loans increases further and after that.

drnakhan2000@yahoo.com