Former finance adviser Dr. Ashfaque Hassan Khan has claimed that currency devaluation and interest rate policies linked to IMF programs cost Pakistan around $148 billion over five years.

Speaking to a private news channel, Ashfaque said the estimated economic loss was higher than the $130 billion cost Pakistan incurred over 13 years during the US-led War on Terror.

He said Pakistan received only around $6-7 billion in IMF loans during the period, while the economic impact of the policies associated with those programs was significantly larger.

Ashfaque also questioned the State Bank of Pakistan’s current interest rate policy, saying the policy rate of around 11.5 percent is not the right tool to address the sources of inflation currently affecting the economy.

He argued that recent inflationary pressure is mainly being driven by higher fuel and food prices rather than excessive consumer demand.

The former adviser pointed to rising wheat and other food prices, higher fuel costs, and the addition of Rs. 80 per litre to the petroleum levy as key factors behind the increase in prices.

According to Ashfaque, inflation caused by supply-side pressures cannot be effectively controlled through higher interest rates. He said monetary tightening is primarily intended to curb demand, making it less effective when inflation is being driven by rising input and commodity costs.