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Financial concept with banknotes of US currency around national flag of Pakistan

Pakistan’s IMF Loans are a Cross-Party Tradition

Imran Khan's recent acceptance of Pakistan's 13th IMF bailout package is not unusual in the political history of Pakistan and have been taken by both of the mainstream political parties for decades.

During the early 20th century different economist and social scientists gave the concept of a "political-economy" which was a merger of politics and economy due to the transformation of socio-economic systems after socialism and communism.

This idea was transformed in the 21st century and is now described as the modern political economy where the economic policies of countries are not only driven by national political and economic dynamics, but also by international dynamics revolving around the economy and international relations, known as financial capitalism.

In this era of financial capitalism, Pakistan is facing one of the worse economic crises, where the country’s economy is effectively being held captive through a debt trap. This suspicious high payment debt trap leads Pakistan towards decline, as most of it’s budget is conditioned into paying these debts, resulting in a decrease in growth and investment as well as it's ability in securing a stable economy.

For this reason Pakistan over the years, irrespective of the political party, has approached different international banks for bail-out packages and loans in which IMF is on the top of the list with having just last month provided it's 13th bailout package.

This is the 13th time Pakistan has approached the IMF for loans under three-year structural adjustment programmes. These loans are specifically designed to control the economy with a number of restrictions, which eventually oblige governments to change their policies and implement austerity measures which include a reduction in public spending (health, education), a hike in taxation such as the "General sales tax" (indirect taxation), the privatisation of State-owned enterprises (telecommunication, steel Mills etc) and currency devaluation.

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