We recognise that there is a trade-off, not between growth and inflation, but rather between the volatility of growth and the volatility of inflation, and we are prepared to accept some degree of inflation volatility to avoid throwing the real economy around too violently.
The problem here was that in the decade of the 1990s, Pakistan had entered into successive agreements with the Fund but never implemented any one of them beyond the first or second tranche release. This had created a credibility gap for Pakistan among the international financial institutions.