THE International Monetary Fund is a loan-disbursing organisation and not one that gives alms or charity. These loans are repaid with interest.

The governments taking these loans repay them by imposing heavy taxes and increasing the rate of different utilities. Thus the ‘begging bowl’ phrase used so often by our politicians and media is technically incorrect. Even commercial banks that extend loans do so after mortgaging properties and/or other assets until the loan is repaid.

The system of seeking loans to run countries is prevalent in many nations and ours is no exception.

The government increases utility rates and imposes taxes on business and industry to repay loans obtained from international financial institutions. However, it is the people — particularly the poor — who bear the burden as the increase in costs as taxes are passed on to the consumer.

This is a request to the government to look for other avenues to repay loans rather than burden the people.

Dr M. Qudrat-e-Khuda

Karachi

Published in Dawn, November 12th, 2018