RECENTLY, there has been news about the establishment of Asian Infrastructure Investment Bank (AIIB) which, headed by China, is set to rival the IMF in striving for investment opportunities in the developing world which, with its ever-growing needs, is always in the need of funds.

Pakistan, with its poor economy, has been on the receiving end of 12 such programmes since 1988, which have been mandated by the IMF.

It is an open secret that the donor, due to its affinity with the US and the monopoly it enjoys as the leading donor, has toed the US policy in poor countries where it has regularly lent.

With the inception of AIIB, it is hoped that renewed competition will force the IMF to become more impartial in reforms programmes extended to borrowers. Also, given the ‘all-weather’ relationship with China, it is hoped that Pakistan will get future debt from AIIB on easy terms as compared to the restrictions which have been imposed on the country under subsequent IMF programmes.

M. Asad Ullah Khan

Lahore

Published in Dawn, March 28th, 2015

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