Javed Ullah Raja
International Monetary Fund (IMF) organization came into being when the balance of payment deficit of European countries was created due to World War II. Its head quarter is in Washington. The head of the institution is from European countries while the World Bank is chaired by the United States. World country members are 190. Usually, the question that comes to mind is whether the loans of the International Monetary Fund are meant to give relief to the countries or to deal with the problems. Before starting this discussion, we think about what is a loan in general, as an individual loan. A loan is a request to borrow money from an individual or organization to get out of any problem or difficulty. A loan is useful to this extent to get out of some problems which arise temporarily. Although, this loan should be used to get rid of difficulties and as soon as possible, the money obtained from this loan should be returned according to the terms and conditions within specific or before time. If the loan is not paid within the stipulated period sometimes household items also have to be disposed off. And there comes a time when a person is forced to either mortgage everything or sell everything. Often we hear that such and such a person became bankrupt under the burden of debts. Therefore, whatever the amount of debt is small or big debt is not good. We can also judge in daily life those who obtain loans from banks or any other institutions their lifestyle and those who live within their own resources and suffer little and stay away from the burden of debt. They are living a comfortable life. Apart from this, their future life is also prosperous. Before the International Monetary Fund loans, this discussion is necessary so that we can understand its characteristics. The amount of loans which it should be taken for the purposes it should be used for the same. This will reduce our debt size and will not increase the problem for the country. When any country faces a financial crisis due to a deficit in income and expenditure, it has to take a loan when they face a problem from IMF. The World Bank provides loans to the countries to temporarily get out of the natural disaster or economical problems. It is up to these countries whether they use it to fix their economy or not. On the one hand, it is a good move to provide an immediate amount of money to overcome any problems. As far as the repayment of loans is concerned, the terms of payment may be different for different countries. Loans may be unconditional or with conditions. In this regard, Critics express their opinion about IMF loans that the IMF is ruled by the big powers. Therefore, their conditions are kept strict for poor countries. General In these terms, rising interest rates increase poverty. Tax burdens increase public utilities and unemployment. Privatization of enterprises damages domestic assets. Removal of restrictions on foreign capital destabilizes in the stock market. By these restrictions the economic conditions of poor debtor countries worsen rather than improve. Benjamin Friedman, an expert at Harvard University, says that it is difficult to determine the impact of the IMF, whether its intervention improves the conditions of a country or not. Worse, the purpose of this institution is to provide loans and enable the process of pro-opposition to correct the economic and financial condition of the affected country and also the recovery process of the loans. The situation in our country is like this we have not considered debt as debt. Nor have we removed the problems for which the objectives were obtained and we have not returned any debt timely. As a result of which our economy would get worse and worse. One thing that is important is that the IMF loans were not used for the purposes. Or some part of the loan was put as salt in the flour. In this way, loans are spent on our frivolities this is what is happening today. Due to this, when we get loans, we are tied up. To be honest, after the loans to the governments, the people are tied up. Our ways and methods are for bringing the country to the brink of destruction. Due to this, we have to approach the IMF again and again. So far we have received loans more or less 23 times since 1958According to a report about Rs. 24.309 trillion, our government owes to domestic creditors, and about Rs. Public sector enterprises owe Rs 2.3 trillion. Pakistan’s external debt is around 126.03 billion US dollars. It is fact to increase inflation due to loans. In the voice of public circles, what does the common man know about the IMF? The benefit of loans is when they get relief, while the people are free to grind more in the mill of inflation. This is the reason why people have always objected to these loans. People say that the World Bank and the loans will beneficial when all kinds of inflation, like electricity, gas, medicines and basic necessities of life become cheaper. This will only happen when the country’s economy stands on its own feet. On the contrary, the prices of everything go up. It is to be noted that Brazil took a loan in 2002 when the country was near to bankruptcy. The country not only revived the economy in two years but also paid back the debt. Hong Kong is a one of the debt free country in the world. Due to IMF loans, problems have been increasing in the country. The standard of living of the people continues to decrease. The people are being tied by the rope of collecting taxes as due to the current debts of 170 billion taxes imposed. This is because our previous debts situation. By the monopoly of the great powers, strict conditions are being imposed, and they always watch on the smaller countries. For example, when presently Pakistan was offered a deposit of 700 million dollars by the China Development Bank, the United States immediately became concerned. As they never want small countries to do well economically. Debts are having negative effects on the economy of the countries. Every incoming government tries to blame the outgoing one that the economy is in a bad condition, and the treasury is empty, but no one has tried to fix it. Despite this, the same political parties are in power again and again. At present, the country is facing numerous problems. The value of rupee is depreciating. The standard of living of the common man is falling. Therefore, there is a need for such measures which will solve the problems. It should be controlled. Attention should be paid to the economic condition of the country. And instead of manipulation of papers, the country’s economy should be put on its feet without false claims. Instead of artificially benefiting the people, there is a need to implement relief projects on a permanent basis. If the situation continues like this, in the future, we will not have the World Bank and other countries come forward to help us. Economists say that by artificially stopping the value of the dollar in the past, the country lost two billion dollars. The process has also been terminated by IMF implementing these conditions. With strict conditions apart from inflation, the prices of electricity, gas, and other commodities will increase further.
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