Daily Times

From the looks of it, Pakistan is all set to secure yet another loan from the International Monetary Fund (IMF). A very vague statement of interest from the money lender was enough to shoot off the stock exchange to an unbelievably high index scale.

But as meetings go on and the Fund makes a pressing case for more budgetary cuts–and far more intense price hikes–questions abound about the country’s long-term financial stability and the impact of repeated borrowing on its economy.

Does it really help the common man if a string of international creditors agree to fill the bottom-bare coffers with a few gold coins when he is the only one paying the price?

That Pakistan has made significant progress in its negotiations would soon be touted as a positive step towards addressing the country’s economic challenges and stabilizing its financial situation. After all, the need for yet another revival programme was as clear as daylight.

Yet, no matter how prepared one may be to add to our debts, they would still wish to see some commitment from the ruling elite regarding an actual plan that uses this loan as the ultimate solution to Pakistan’s economic woes.

Time and again, unconvinced delegations have expressed concerns about the country’s ability to meet the stringent requirements and the potential consequences of failing to do so. Most likely, this would lead to the legislature green-lighting a series of pre-agreement policy actions, the brunt of which, has largely been borne by the masses in the past.

Have we already forgotten the burning bills fiasco when helpless consumers stepped on the street and implored their government for mercy? There’s a lot that needs to be done to ensure efficiency and the state would have to address root causes such as corruption and lack of accountability, to show the world it is ready to turn over a new leaf.

However, as time will reveal, the Sharif administration government is about to find itself in a blind spot: how to handle the demands of moneymen and impats on its people. The harsh austerity measures imposed as part of the loan conditions have the potential to further burden the already struggling population. The game is about to get very tough. *