ISLAMABAD, Dec 5: Reform programmes that governments have agreed with the IMF will “not” deliver the intended results unless they are implemented, believes a senior IMF official.

Henri Ghesquiere, IMF’s Senior Resident Representative in Pakistan here on Wednesday issued a rejoinder to Dr Mahboob ul Haq Centre’s report which blamed the IMF for failures of the 1990s.

The report on Human Development in South Asia was launched last week which asserted that the conditions attached to IMF loans made it impossible for countries to escape debt trap and move to a higher growth path, and institutional policies of multilateral organizations resulted in increased deprivation of the poor.

The IMF official refuted the report, and said that changes in governments and lack of political support led to non implementation of the reform programmes. “The elimination of tax privileges foreseen under the programme did not take place. Fiscal deficits were not brought down. Lack of commitments by governments and failure of governance had for result that the increases in social expenditure and essential development projects that were envisaged, did not take place,” Mr Henri said.

Consequently, he said, Pakistan received only one third of the 4 billion dollar, which the IMF approved under four lending programmes during the 1990s. “The patient who discards two thirds of the medicine should not abuse the nurse for staying ill,” he retorted.

Recessions often accompany even successful IMF adjustment programme before economic growth accelerates. “But why blame the programme that only seeks to correct the preceding economic mismanagements that made the adjustment unavoidable,” he added.

He said that report rightly noted that economic growth of 6.5 per cent per annum during the 1980’s in Pakistan indeed led to a decline in poverty during this period. But loss making public enterprises and the expansionary fiscal policy that fuelled the boom resulted in rapidly growing debt without creating an internationally competitive export sector, causing the approach eventually to collapse, he said.

However, the IMF official said that the current government has composed a coherent strategy for poverty alleviation and sustained economic growth, in close consultations with the provinces and civil society.