Devil And The Deep Sea

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Devil And The Deep Sea
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To get the IMF money, Sharif has to
  • Slash defence expenditure, which is 21% of the budget. But this could be political suicide.
  • Raise sales tax across the board by 15%. But faced with the wrath of traders, he has withdrawn this.

    But if IMF pulls out
  • Other multilateral lenders may back off
  • Foreign investment, already miniscule at $282 million in 1998-99, will dry up
  • Pakistan's economy will go into an even sharper decline
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