IMF Costs Pakistan More Than 9/11

Former Economic Adviser Dr. Ashfaque Hassan Khan asserts that International Monetary Fund (IMF) policies have inflicted financial damage on Pakistan totaling approximately $148 billion over a five-year timeframe, surpassing the costs of the US-led "War on Terror". In an interview with a private news outlet, Khan addressed pressing economic inquiries, contending that the economic hit inflicted by the IMF exceeded the $130 billion cost incurred by Pakistan during the 13 years of the US coalition's War on Terror.

Khan emphasized that Pakistan only received an estimated $6-7 billion in IMF loans during this period, while the economic repercussions of its policies were significantly greater.

Khan further criticized the prevailing interest rate policy, contending that the State Bank of Pakistan's interest rate of around 11.5 percent is not an effective solution for tackling the current sources of inflation. He attributed the recent inflationary pressures to surging fuel and food prices, rather than inflated demand. Specifically, Khan highlighted the rise in wheat and other food prices, increased fuel costs, and the recent addition of a Rs.

80 per liter petroleum levy. Khan argued that inflation stemming from supply-side factors cannot be effectively addressed through higher interest rates, as such monetary tightening is primarily intended to control demand.