ISLAMABAD, Nov 11: Dozens of civil society activists and representatives of trade unions and lawyers staged a protest demonstration outside the Rawalpinsi-Islamabad Press Club camp office against possible move of the government to accept International Monetary Fund (IMF) conditionalities to get bailout package to overcome economic crisis.
The protesters were holding placards and banners inscribed with slogans against government’s economic policies. Gathered under the banner of “Resist IFIs”, a coalition of civil society organizations, the protesters also chanted slogans like “No to IMF, No to IFIs”.
The representatives of civil society organizations observed that such arrangement with IMF always came with conditionalities, which would add to the woes of the poor and vulnerable segments of the country”.
Later speaking at a press conference, the representatives of the participating organizations said that international financial institutions (IFIs) like IMF, the World Bank (WB), and Asian Development Bank (ADB) focused on macroeconomic stability.
“In IMF debt, the focus most often is on economic gains for shorter term of 3-5 years, while prioritisation of debt repayment is expected to be done at the expense of essential public spending on development sectors like health, education and agriculture”, Khadim Hussain, a social activist observed.
“Pakistan”, he added, “is no exception to the rule-book that the IMF has followed in its classic style of “one-size fits all regimes.”
They feared that there will be cut in the Public Sector Development Programme and pointed out that currently public spending on education and health was about 2.7 and 0.75 per cent, respectively, way below international benchmark to achieve Millennium Development Goals (MDGs).
Besides, they said, reduction in social safety net programmes. The poorest of the poor -- one-fifth of the country’s population – is spending nearly 30 per cent of income on cereal and urgently need support through targeted social safety-net programmes.
“That will also result in reduction in agriculture subsidies and investment – 65 per cent of the population is directly and indirectly involved in agriculture and need support to increase production and income,” they said.
The deal currently under negotiation with the IMF could impose conditionalities of doing away with subsidies on essential commodities which are going to hit the poor the hardest at a time when inflation has gone all time high of 25 per cent in recent past.
Furthermore, based on the history of IMF condtionalities it could require the government to privatise state enterprises and assets at a time when the Western governments themselves are engaged in nationalising banks and other troubled enterprises.
“These cost-cutting measures, if implemented in full and without consent of people and civil society of Pakistan, will be a disaster for the poor women and men already crushed by inflation, growing unemployment, radicalisation and impoverishment,” they feared.
They highlighted that the IMF loan should not be at the expense of pro-poor policies.
“This loan and its condtionalities should not further burden the poor women and men of Pakistan. This debt is an illegitimate debt from the poor people’s perspective, who are already suffering”, said, Amjad Nazeer from ActionAid. “The research has proved that the lender institutions, such as IMF, have taken back wealth and resources of the borrowers manifold more than the borrowed money, still the poor countries are indebted,” they said.
The coalition urged the government to look for the local alternatives and avoid the solutions that burden the already burdened poor women and men of this country. “This is a time for change and for our thinking and way of living.”
They urged the government to take concrete measures for a long-term, pro-poor and self-reliant economic approach.
The campaign of ‘Resist IFIs’ is the coalition of different civil society organisations including Strengthening Participatory Organisation (SPO), Sungi Development Foundation, Sustainable Policy Development Institute (SDPI), ActionAid and Oxfam International.