Why Pakistan Keeps Going to IMF?

During the Second World War, the allied powers parleyed at Bretton Woods in America and came out with a detailed corpus for regulating monetary arrangements between states as the

old monetary order was taken to have irretrievably broken down. In this context, IMF was created in line with Bretton Woods arrangements that devised rules for commercial and

financial relations between the states and it became the first of its kind monetary order that still continues though many of its tenets have been watered down by the ravages of

time and pressures of events. Pakistan to default without IMF programme: Imran Khan  One aspect of the Bretton Woods system required countries to guarantee convertibility of their

currencies into US dollars to within 1% of fixed parity rates with the dollar convertible to gold bullion for foreign governments and central banks. Since it was also envisioned

that greater cooperation among countries in order toprevent future competitive devaluations, therefore, IMF was established to monitor exchange rates and lend reserve currencies to

nations with balance of payments deficits. It is widely known that Pakistani economy has consistently failed to achieve the needed diversity to maintain and enhance the fiscal and

monetary space. The economic conditions in the country always remained on tenterhooks and thefinancial players never succeeded to remove the structural weaknesses of the system and

their sustained failure made the weaknesses grow to the level that they became chronic issues completely besieging the economic process of the country from where it has not been

able to come out. Pakistani economic developments have been subjected to quirks that upended the entire economic performance of its economy. The inherent weakness facing the

national economy implied that Pakistan is no stranger to IMF bailouts as the country consistently suffered from external payments crisis. The structural difficulties facing all

aspects of economic activity are a curious amalgam of socio-economic and cultural facets of the Pakistani polity and their persistence cogently brings to fore the lack of

consensual approach to all economic problems. It is now widely recognised that Pakistani economic policy makers have created myriad problems for the so-called economic development

they planned and carried out in the country and almost all such efforts were and are oriented towards looking outward for financial resources instead of concentrating on harnessing

indigenous resources. The result has been exceedingly heavy reliance on long-gestation projects under the public investment garb that finally saddled the country with high levels