Pakistan is struggling hard to lessen the amount that it wants from the International Monetary Fund (IMF). The reason for arranging aid from “here and there” is obvious: the lesser the size of the bailout package from IMF, the milder the conditions of the IMF will be. However, the recent visits of Imran Khan to secure aid packages from “friendly countries” have failed as except for Saudi Arabia, no other state has given a loan/aid package to Pakistan.

The fact is that Pakistan will eventually seek assistance from IMF. Though the two sides are yet to reach a consensus on the terms and conditions of the bailout package, however, with the latest “inconclusive” round of negotiations between the two sides, much depends on the decision of the executive board of the Fund that may take up the case of Pakistan in the second half of January. There are still some disagreements over the implementation of policy measures that IMF suggests.

While IMF wants Pakistan to implement the terms and conditions that it associates with its bailout package, Pakistani officials demand of allowing a gradual process to pass on the impact of the harsh fiscal policy adjustment to the people. The disagreement over implementation of fiscal and monetary policy is the bone of contention between the two sides. IMF needs to understand the government’s inability in swift implementation of the reforms. For the immediate implementation of a harsh economic policy that IMF suggests can cause widespread unrest in the country.

However, the latest developments and inability of the “friendly countries” to assist Pakistan will leave Pakistan with no other choice but to bend its knees before the strict policies of the Fund. Imran and his team want to learn from China and Malaysia in overcoming poverty, reducing insurmountable foreign debt, the government is yet to come up with a comprehensive plan that elaborates on how to take Pakistan out from the current financial crisis. Asking for aid and bailout packages are anything but sustainable solutions.