Revival of currency, investors’ confidence not linked to rate hike

Karachi: The Federation of Pakistan Chambers of Commerce and Industry FPCCI on Sunday said the conditions of International Monetary Fund IMF have delivered a deadly blow to the shaky economy and social equality which will spark off anarchy across the country.

IMF conditions are of little economic benefit but have a devastating impact on families, communities, economies and currencies, said Zubair Ahmed Malik, President FPCCI.

Speaking to business community, he said that implementation of IMF policies has triggered unemployment, compromised working conditions and amplified social inequality globally; Pakistan is no exception.

Zubair Ahmed Malik said that the lender is a tool designed for global dominance which will always fail to regulate greed or prevent a crisis but support the rich which is a reason behind increasing number of billionaires in almost all the countries, especially in the underperforming economies.

Economies depending on IMF are no more secure today than they were few years ago as implementation of IMF policies are ensuring the contrary, he observed.

The FPCCI chief said that economic managers and central bankers should not blindly follow IMF ideology and accept no directive without economic evidence. They should remain cautioned of the traps and take measures to counter attacks by lender on economies in guise of reforms.

Malik said that IMF programmes should be signed after taking masses and public representatives into confidence as undemocratic moves by democratically elected governments seldom pay.

The finance teams of different countries trapped by the IMF hawks should admit that they are not as wise as they claim and come up with strategy to salvage their economics, currency and masses, he demanded.

“I fundamentally disagree with the Fund’s harsh conditions which amount to economic suicide and mass genocide as they want government to wash hand of the public welfare projects,” Malik said in his public remarks.

He deplored as misguided the high interest rates and other painful austerity policies the IMF required several Asian countries to pursue in exchange for bailouts.

Higher policy rates has no connection with stronger currencies or investors’ confidence as advocated by the IMF, the national business leader observed, adding that it makes no sense to accept rescues that are insensitive to the needs of the poor.

IMF’s performance in managing the crisis has exposed its agenda of economic meltdown and massive social unrest as it is only focused on the conditions and always imposes policy with little or no consultation with affected countries.

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