Economist Atif Mian evaluates Pakistan’s deal with the IMF

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Economist Atif Mian started a detailed thread on Twitter in which he evaluated the ‘structural adjustment’ programme between the IMF and Pakistan.

The government and the IMF have reached a staff-level agreement according to which Islamabad will be provided $6 billion by the international money lender.

According to renowned economist Atif Mian, the programme is a result of poor policy choices over the years by the previous government.

According to Atif Mian, the PML-N government had used China to build Pakistan’s infrastructure which led to a steep rise in Pakistan’s external debt.

He pointed out that the challenge was to slow the domestic demand for imports but not affect the aggregarte demand.

He pointed out that Pakistan will be required to carry out devaluation which cuts imports but unfortunately, the country’s exports aren’t doing that well either.