Pakistan IMF Program Stabilization and Costs

Pakistan relationship with the IMF and what stabilization has produced

The Stabilization

Pakistan economic crisis stabilization through the IMF program has produced the macroeconomic indicators the program targets: foreign exchange reserves recovered, inflation declined from its peak, and the current account deficit narrowed.

The Cost

The fiscal consolidation measures required -- subsidy reduction, tax increases, spending compression -- have imposed significant costs on Pakistani households. Inflation reduction from its peak does not mean prices returned to pre-crisis levels. They are rising more slowly from a much higher base.

Coverage

Daily Asian News covers Pakistan economic situation because the accountability journalism of IMF programs requires documenting both the macroeconomic stabilization they produce and the costs that stabilization imposes on the population being stabilized.

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