IMF Announced New Country Head

News Today: The IMF names Mahir Binici the new head for Pakistan, while the state reinforces efforts to clinch the $7 billion loan approval by the end of this month. These rigorous efforts are the results of suspicions about the motives of the global lender. The IMF’s wrong assumptions of the current account deficit to force Pakistan to increase new external loans raise questions about the motives of the lender.

Binici, a Turkish national, is appointed as the Resident Representative for Pakistan. Mahir has served in the Turkish Central Bank and is competent in macroeconomic policies focused on emerging market trends. The central bank governor highlighted that Pakistan would tend to secure the approval in the first half of this month.

The global lender delisted Pakistan in August since the government could not secure $12 billion cash deposits. The government also failed to arrange $2 billion in new financing. Mahir Binici faces a challenge to make the country office a connector between ISB and their Washington headquarters. IMF demands Pakistan to first arrange $2 billion from other creditors for initial approval. Pakistan is under strain as the IMF pushes the country to accept the unrealistic goals. Such crucial conditions by the international lender are impacting its credibility in Pakistan.