Argentina is one of the largest and most frequent borrowers of the International Monetary Fund (IMF). The country first sought assistance from the IMF in the mid1950s and has since entered into over 20 separate arrangements.

Notably, during the 2001 economic crisis, Argentina secured one of the largest-ever IMF programmes, and the country again received a record $57billion loan in 2018 under former president Mauricio Macri. Hence, it is instructive for countries like Pakistan, another frequent user of IMF bailouts, to study and learn from Argentina’s history.

Argentina’s economic saga has been a rollercoaster of stunning recoveries and crushing crises over the past two decades — a narrative defined by bold interventions, mounting debt and an over-reliance on short-term fixes that mask deeper structural flaws.

Fast forward to early 2025, and the country still faces an outstanding IMF debt of roughly $44billion.

In a dramatic bid to tackle this burden, President Javier Milei issued an executive decree on 11 March, 2025 that pre-approved a new IMF loan agreement.

This decisive measure is aimed at accelerating negotiations, unlocking vital funds to bolster the central bank’s foreign currency reserves and easing stringent currency controls. The proposed deal offers a 10-year repayment period, complete with a grace period of four years and six months.

Critics have not spared the Milei administration for bypassing the need for dual-chamber parliamentary approval — by securing backing from just one legislative chamber, some argue that this........

© Dawn Business