Pakistan's Dependency on the IMF

Pakistan has maintained a long-standing relationship with the International Monetary Fund (IMF) since the late 1980s, frequently relying on it for financial assistance despite repeated criticisms of its economic management. The country has faced intense scrutiny due to its inability to satisfy the IMF's conditions, particularly regarding tax reforms, which are necessary for creating a sustainable financial path. Currently, a significant portion of government revenue is consumed by debt servicing, leading to a situation where the economy primarily relies on external borrowing to finance consumption rather than fostering investment for growth. This dependence raises questions about the sustainability of Pakistan's debt and the effectiveness of the IMF's engagement, as the nation continues to cycle through programs without achieving meaningful reform.