Abstract:
This study examines the impact of International Monetary Fund (IMF) policies on Pakistan’s state autonomy from 2019 to 2023, focusing on economic, defense, foreign policy, and domestic autonomy. Using the theoretical framework of complex interdependence, the research attempts to find that while IMF programs aim to restore macroeconomic stability, they have reinforced external dependencies, limiting Pakistan’s ability to formulate independent policies. The qualitative analysis reveals that IMF-imposed fiscal consolidation measures, including subsidy removals, tax increases, and a market-driven exchange rate, have significantly constrained Pakistan’s economic autonomy. These policies have contributed to high inflation, currency depreciation, and rising debt servicing costs, reducing the government’s control over national economic priorities. In turn, these economic pressures have weakened Pakistan’s defense and strategic autonomy by reducing military expenditures and restricting modernization efforts, thereby affecting its deterrence capabilities. In the realm of foreign policy, IMF conditionalities have constrained Pakistan’s flexibility in managing bilateral relations, particularly with China, by imposing transparency requirements and influencing debt rescheduling under the China-Pakistan Economic Corridor (CPEC). Domestically, IMF-driven privatization and austerity measures have widened socio-economic disparities, limiting the state’s ability to implement welfare-oriented policies. To mitigate these challenges, the study recommends diversifying financial partnerships, implementing economic reforms that prioritize social protection, and adopting a more strategic approach to debt management. These measures will enable Pakistan to achieve sustainable economic stability while safeguarding its national autonomy in an increasingly interdependent global economy.
