Government urged not to seek more loan from IMF: Online News

ISLAMABAD: Acting President, Islamabad Chamber of Commerce and Industry (ICCI), Shaban Khalid has urged the government not to seek more loan from IMF as it would have devastating effects on the economy in the long run.

Acting President ICCI was commenting on the statement of Advisor for Finance Mr. Shaukat Tareen that a Pakistani delegation was holding talks with IMF officials in Dubai for seeking 4.5 billion dollars new loan.

Pakistan’s external debt and liabilities have surged to $50.85 billion during the second quarter of current fiscal year from $45.50 billion and the main contributor to this rise in foreign debt was $3.1 billion obtained from International Monetary Fund in November 2008, Acting President ICCI observed.

He underlined that in coming days, the annual debt payments would further increase as a result of surge in external debt and liabilities which will put more burdens on our scant financial resources.

Shaban Khalid said our foreign debt and liabilities have risen by $15.01billion during last three and a half years from $35.834 billion at the end of June 2005 while additional IMF loan will further enhance our debt servicing obligations squeezing our resources for developmental projects.

He said we should learn from the history as the history of IMF relationship with countries shows that IMF loaning facilities always proved harmful to people as well as to business entities.

He said IMF prescriptions to borrowing countries like eliminating all subsidies on utilities and agriculture inputs, slashing government spending and raising taxes made conditions tougher for general public and businessmen.

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