Pakistan-IMF: Partnership Built on Dependence

In my recent reflections on Pakistan’s economic dilemmas, one truth stands out — our relationship with the IMF has never been economic, it has always been political. What began as assistance for growth soon turned into a calculated trap of dependency. The IMF didn’t reform Pakistan’s economy; it reprogrammed its sovereignty.

Pakistan’s long association with the IMF has never truly been about stability; it has been about control. What started in the name of “support” evolved into a vicious cycle of borrowing, serving both foreign powers and the ruling elite at home.

During the Cold War, IMF lending was less about economics and more about strategy. Pakistan’s geography made it a convenient pawn in Washington’s global game of containment. Loans came with neatly crafted “conditionalities,” but the real aim was to keep Pakistan’s economy tethered to Western influence.

The much-advertised structural reforms were cosmetic. Land reforms never touched the feudal elite, tax reforms spared the powerful, and privatization transferred wealth to cronies. Instead of fostering industrial growth, policies promoted consumer industries — assembling fast-moving consumer goods rather than producing capital or export goods. The result: an illusion of progress built on imports and consumption.

With every bailout, the dependency mindset grew stronger. The IMF was always available, and policymakers were always willing. A belief took root — that salvation lies in foreign help, not self-reliance.

After the Soviet invasion of Afghanistan in the late 1970s, Pakistan was declared a “frontline ally.” The US poured in funds and influence, effectively turning Pakistan’s economy into a Cold War instrument. IMF support neatly aligned with Washington’s geopolitical interests, ensuring compliance rather than reform.

Over the decades, this external control merged with internal manipulation. Regime changes — military or civilian — often bore foreign fingerprints. Today, the IMF stands not as a partner in reform but as a symbol of economic subservience — proof that Pakistan’s journey from aid to autonomy remains unfinished.