بسم الله الرحمن الرحيم
Reject IMF, Establish Khilafah
Hizb ut Tahrir / Wilayah Pakistan
Ramadhan 1440 AH - May 2019 CE
Introduction: IMF, Pakistan and the Khilafah
Pakistan today is gripped in intense debate over the hold of the International Monetary Fund (IMF) over the economy. However, the debate is limited to the extent of compliance to the IMF, rather than challenging the IMF itself and the principles upon which it stands. In origin, the IMF prescriptions are destructive to Pakistan’s economy, as they are based on capitalism, a flawed ideology.
The economic prescriptions offered by the capitalist economic system for struggling economies of developing countries, like Pakistan, are mainly based on the policy recommendations of what has come to be known as the “Washington Consensus.” This consensus was established by the International Monetary Fund (IMF), World Bank and the US Department of the Treasury. It is a set of ten economic policy prescriptions, offered as a reform package for ailing economies. Apparently the consensus recommends structural reforms that increase the role of market forces in exchange for immediate financial help to strengthen economies. However, a detailed look reveals troublesome policy recommendations that worsen a dire economic situation.