ECONOMIC SOVEREIGNTY UNDER PRESSURE: PAKISTAN’S EXPERIENCE WITH THE IMF

Abstract

The IMF is often criticized for its conditionality. Its interference in other countries' policymaking space is considered unsound, especially since it inhibits the country's decision-making, and the recommendations it presents do not consider the needs and functioning of the specific country. Pakistan is one state that has especially suffered at the hands of the IMF. Despite being the only 4th largest borrower, Pakistan has faced the most significant conditions to activate the MF bailout packages. This study uses Pakistan as a case study to understand the relationship between IMF conditionality and Economic Sovereignty. By using an individualized regression approach, the study captures how one independent variable affects the various components of the multidimensional concept. The results show that IMF conditions negatively impact economic sovereignty through its Proactive and Defensive components. However, the results of the Prosperity concepts remain inconclusive.