IMF Costs Pakistan More Than 9/11

.. by Ahsan Gardezi

Former Economic Adviser to the Ministry of Finance Dr. Ashfaque Hassan Khan has stated that IMF policies have cost Pakistan around $148 billion over a five-year period, more than the US so-called war on terror.

Speaking to a private news channel, Ashfaque responded to some very sensitive economic questions that the estimated loss was higher than the $130 billion economic cost Pakistan incurred during 13 years of the US coalition’s War on Terror.

He said Pakistan received only around $6-7 billion in IMF loans during the period, while the economic cost associated with the policies was far larger.

Ashfaque also criticized the current interest rate policy, saying the State Bank of Pakistan’s policy rate of around 11.5 percent is not the appropriate tool for dealing with the current sources of inflation.

He said the recent inflationary pressure is largely coming from higher fuel and food prices rather than excessive demand.

He specifically pointed to rising wheat and other food prices, higher fuel costs and the addition of Rs. 80 per litre in petroleum levy.

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Ashfaque said inflation originating from the supply side cannot be effectively addressed through higher interest rates. He said monetary tightening is designed primarily to control demand. .. Source