There are straightforward ways of gauging the performance of different regimes. Simply put, one can see whether the policies strengthen the economy or weaken it to the extent that it becomes vulnerable to internal and external shocks. During the last 60 years or so, the country has become increasingly dependent on external sources for finances and technology while veering away from the concept of self-reliance. The net result is that the country today faces a grave debt trap. Successive regimes in Pakistan have reached out to the International Monetary Fund (IMF) for emergency bailout support to overcome serious financial difficulties arising intermittently, and considered organically unmanageable, to ward off the default risk.
Till November 1958, Pakistan saw no need to borrow from the IMF, thus indicating that the economy was relatively strong and self-sustaining. From December 1958 to 2018, Pakistan borrowed 21 times from the IMF; seven times by three military governments and 14 times by the two main experienced political parties, the Pakistan People’s Party (PPP) and the Nawaz faction of Pakistan Muslim League (PML-N).
The frequent recourse to IMF by the civilian governments is indicative of the poor shape of the economy during their rule. The previous government that was led by the Pakistan Tehreek-i-Insaf (PTI), which came to power in 2018, sought the lone IMF support in 2019.
Arif Majeed
Karachi
Ways of gauging performance of different regimes
