This is apropos a news item titled ‘Oxfam says IMF pushed for larger austerity cuts in borrowing countries’ carried by this newspaper recently; according to which, the IMF has pushed borrowing countries to make bigger austerity cuts over the past decade.
Oxfam has pointed out that the median annual austerity cuts required by the International Monetary Fund rose from 0.21 percent of GDP between 2012 and 2017 to 0.85 percent of GDP between 2018 and 2025.
In my view, therefore, it is important to note that one of the core principles of neoliberal economic policies is fiscal austerity. This means the government must reduce spending on social welfare programmes, healthcare, and education. It is widely known that neoliberal economic policies and the International Monetary Fund (IMF) are closely linked. The IMF uses neoliberal principles as the core framework for its financial ‘rescue’ packages and loan conditions. That the IMF places a greater emphasis on austerity is a fact. Its advice often hurts a loanee country’s growth prospects and reduces job opportunities for its people. The IMF is rarely concerned if a country’s growth is stunted because of its austerity advice.
Abdul Majid Khan (Karachi)
Copyright Business Recorder, 2026
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