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Pakistan's external economic dependence in general and dependence on multilateral financial institutions in particular has increased to the extent that there has been significant interference even with Pakistan's key strategic decisions to guard its territorial security. These multilateral institutions comprise the Bretton Woods sisters of World Bank and International Monetary Fund (IMF) and BWI dominated Asian Development Bank (ADB). In the aftermath of Pakistan's nuclear tests, the G-8 countries have banned fresh nonhumanitarian multilateral assistance to Pakistan. As a result, Pakistan stands to lose some 700 million dollars per annum of programme/project related World Bank assistance and 600 million dollars per annum of ADB assistance.1 Pakistan's external debt as percentage of Gross National Product (GNP) increased to 49.5 per cent by 1995 with multilateral debt as per cent of total external debt having increased to 40.5 per cent by 1995 from a level of 15.4 per cent in 1980.2 In 1997, Pakistan signed a fourth Extended Structural Adjustment Facility (ESAF)/Extended Fund Facility (EFF) for 1.6 billion dollars with the IMF. This agreement with the IMF was based on а тздог donor conditionality in the fulfillment of which Pakistan threw open its economic frontiers to imported finished goods through a rapid import tariff reduction by 20 per cent. Compliance with this IMF conditionality was a major blow to domestic industrial capability which is till in its infancy. This author's contention has been that the more the assistance of (BWI) is sought, the more dependent the country becomes on external assistance and the more difficult it becomes for the country to gain economic sovereignty. On the other hand, there is a group of economists in the country which portrays the assistance of multilaterais in general and BWIs in particular as
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