The amount mentioned is $6 billion. The loan facility is for three years. The opportunity cost is run-away inflation and a downward economic spiral, which the country is going through. What began as an exciting journey of change after Prime Minister Imran Khan took office, became disappointing when realization sank in that Pakistan had no choice but to seek a bailout package from the International Monetary Fund. The 39-month loan “subject to the timely implementation of prior actions and confirmation of international partners’ financial commitments” is the 13th such package from the IMF for Pakistan. In October 2018, two months after he took office, Prime Minister Khan had said, “I am quite hopeful that we will not have to approach the IMF. Had the previous government not been borrowing so heavily or had the amount so received been used properly, the economy would have been in a good shape.” Nearly seven months after making this statement, Pakistan has asked for and received a bailout package from the IMF. Pakistan Tehreek-i-Insaf was known for its U-turns even before it rose to power. Another of those was not a great shock. But it did not end with the IMF loan deal. The people viewed Reza Baqir’s appointment as State Bank of Pakistan governor with great scepticism. With nearly 18 years of experience with the IMF and two years with the World Bank, Baqir has held key positions in the Bretton Wood institutions. Few believe that his appointment at the time of Pakistan negotiating an IMF loan is a coincidence. Now that economic decision making in Pakistan is again in the IMF shackles, the rupee has resumed its slide against the US dollar reaching 154:1 in the open market. This has made imports and foreign loans dearer. The rising price per litre of petrol at Rs 108 has also dented the economy. Profit margins in most businesses have dwindled. The austerity requirements have serious implications. The spending cuts in development and welfare sectors will force unpopular decisions and cost the government some of its popular support. The IMF wants Pakistan to have an exchange rate determined by the market. The rupee is depreciating; the future of national economy is on thin ice The cost of the IMF loan included changes in the prime minister’s team. First, Asad Umar, the federal minister for finance, revenue and economic Affairs was replaced by Abdul Hafeez Shaikh, who is currently adviser to prime minister on finance, revenue and economic affairs. Second, Syed Muhammad Shabbar Zaidi was appointed chairman of the Federal Board of Revenue to replace Jehanzeb Khan. Reza Baqir was appointed the State Bank governor replacing Tariq Bajwa. The delay in approaching the IMF may have cost it some of the loan availability. Islamabad was said to be expecting a loan facility in the neighbourhood of $12 billion. However, the IMF approved a $6 billion package. Half the loan amount will be spent on repaying a previous IMF loan. There have been projections that Pakistan will have a $10 billion deficit and will need to repay around $30 billion over the next seven years. With the IMF loan came a stipulation to slash subsidies, increase revenue and cut expenditures. The government will need to collect 35 per cent more revenue (Rs 1.5 trillion) than that collected during 2018-2019 (Rs 3.95 trillion). Cutting government expenditure while growth declines, inflation continues and tax rates climb will be a daunting task. The IMF also wants Pakistan to have an exchange rate determined by the market. The rupee is depreciating: the national economy is on thin ice. The steady rise in interest rates will lead to a rise in the lending rates, which will add to the cost of doing business. To ease the circular debt problem, energy tariffs are to be raised by about 20 per cent. This will burden all consumers, particularly the industrial sector. And this is just the beginning. The IMF conditions will hamper macro-economic growth. The cost of not voting for the previous rulers and choosing Imran Khan has been great. Let’s hope therefore that some good comes from it. The writer is an independent researcher