Government urged to avoid tough IMF conditions

LCCI official says such constraints will shrink the economy and increase unemployment


Our Correspondent January 11, 2019
LCCI official says such constraints will shrink the economy and increase unemployment. PHOTO: FILE

LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) advised the government on Friday to avoid tough International Monetary Fund (IMF) conditions, which would not be in the better interest of the economy.

In a statement to the government, the LCCI office-bearers pointed out that such constraints would ultimately shrink the economy and jack up the unemployment graph.

LCCI President Almas Hyder underlined that if IMF funding was inevitable, then no harmful conditions like hike in discount rate and additional audits for businesses should be accepted at any cost.

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"It is not incorrect to claim that majority of Pakistan's economic woes are solely because of haphazard borrowing from the IMF," he reiterated. "Previous governments accepted its strict conditions while paying no heed to the ground realities."

IMF was not aiming towards economic betterment of developing countries, instead it is working to squeeze them, he added.

He recalled that when Malaysia, Indonesia and Thailand faced economic crisis, Malaysia rejected IMF prescribes and evolved out of the distress from its own resources.

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"The discount rate in Pakistan is already high and any further increase would obstruct new investments and foster joblessness," he commented.

Noting the fact that the 10 indicators in the ease of doing business were concerned with government's rules and regulations, the LCCI president lamented that running a business has turned into an arduous task due to the presence of these rules.

Hyder expressed optimism that the country would be able to overcome economic challenges even without approaching IMF.

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