Picture a marriage marked by repeated breakups and makeups—that’s Pakistan and the IMF for you. The ‘love’ comes in bailout packages; the ‘hate’ in the harsh conditions attached. Today, this dynamic has ‘Terroristan’ staring down a financial abyss.
The IMF’s latest snub came after Pakistan missed key benchmarks in its $3 billion standby arrangement. Reserves at $3 billion barely cover essentials, while debt servicing looms large at $20 billion annually.
Islamabad blames everything from COVID aftermath to 2022 floods costing $30 billion, but the Fund insists on accountability. Demands include hiking electricity tariffs by 70% and slashing untargeted subsidies fueling deficits.
Tied to this are security concerns: Western nations link aid to action against terror groups, a sore point for Pakistan’s military establishment. Over decades, 23 programs have pumped in $30 billion, yet growth stagnates below 4%.
With elections nearing, political will wavers. Analysts foresee a potential default akin to Sri Lanka’s, unless concessions flow. This saga underscores a deeper malaise: reliance on external saviors over homegrown fixes.