Mawaiz Khan Akash
As Pakistan announced on Saturday its first rescue from IMF (International Monetary Fund) in the shape of loan at least 7.6 billion dollars to overwhelm the financial crisis at the other hand opposition think it a new burden on Nation. The business community from all over the Pakistan applauded it in their meetings, seminars and conferences.

The country top financial advisor Shaukat Tareen is of the clear view that global financial crisis had adversely impact the country's foreign exchange reserves so there was an urgent need of loan from financial institutions. "We have reached an agreement with the IMF with the help of our friends and other officials." expressed Shaukat Tareen in news conference.

Yes, I think there was a need of loan but few questions perplexes the minds of common people. Would this loan be helpful to stabilize our currency? Would it restore the confident of foreign investors? Would it be more helpful to protect the poor? Let have bird eye the IMF Chief According to IMF Chief Dominique Strauss Kahn, The Pakistani authorities has two main objectives, the first one, "to restore the confidence of domestic and external investors". And the second goral is "to protect the poor and preserve social stability through a well-targeted and adequately fund social safety net." Both objectives are the integral for such a country like Pakistan.

Now, we are surely expected to have loan from IMF by having question when and how it would be repayable. Shaukat Tareen said, "The interest rate on facility would vary between 3.15 to 4.15 percent with some changes according to the marketing conditions, and would be repayable between fiscal year 2011/2012 and 2015/16.

As far as the conditions are concerned eleven of the 16 have been accepted with slight changes. The official said that major conditions accepted by the Pakistan government include changes in the Islamic Development Bank loans and differentiation between loans and grants, devaluation of rupee, freezing of non-development expenditure under the defence budget for the last three quarters of the current financial year, non-provision of supplement grants to government departments, ending subsidy on gas and electricity, 20per cent reduction in non-development expenditure of civil departments and federal ministries, increase in markup rate of banks and on inter-bank transactions, uniformity in the inter-bank and open market dollar exchange rate and stoppage of government financial intervention in stock markets.

Under these tough conditions, objectives and differences, Pakistan would be further compelled to seek the IMF assistance because the under the IMF pressure on the friend of Pakistan no country has satisfied to extend loan to Islamabad to meet its repayment conditions. In this connection the government has intentionally decided to write a letter to the IMF assistance. Officials said. I personally think this loan will assist country's financial however under these tough and tight conditions Pakistan would not be able to prosper its economy futuristically and holistically.