Complete Document regarding IMF's arrangements

[SBD-3]

http://www.finance.gov.pk/MEFP_201314_201516.pdf

 

[neehar]

pretty much the same what they say to everybody who approaches them..

 

[UmarJustice]

IMF approves $6.7b loan to Pakistan

The International Monetary Fund (IMF) has approved a financial assistance package of $6.7 billion for Pakistan, boosting Prime Minister Nawaz Sharif’s efforts to tackle the country’s severe financial crisis.
The IMF said the Executive Board approved the loan on Wednesday. It will allow the release of a first installment of $540 million with the remainder paid out over three years, subject to the completion of quarterly reviews, the Washington-based global lender said.
According to the IMF, the programme is expected to help the Pakistani economy rebound, forestall a balance of payments crisis and rebuild reserves, reduce the fiscal deficit, and undertake comprehensive structural reforms to boost investment and growth.
“Adherence to the programme is also expected to catalyse the mobilisation of resources from other donors,” the IMF said.
Pakistan’s foreign currency reserves have been severely depleted over the past two years. To secure the loan, it had to commit to changes in the economy designed to increase growth and improve financial stability. The measures aim to bring down the deficit, reduce pervasive electricity shortages and increase the country’s poor rate of tax collection.
The three-year arrangement was approved by the IMF Executive Board under the Extended Fund Facility (EFF).
Despite the challenges it faces, Pakistan is a country with abundant potential, given its geographical location and its rich human and natural resources, it added.
Agencies add: Two top finance ministry officials in Pakistan announced the Fund’s approval of a package in August, pending the board’s decision and Pakistan’s progress on fiscal reforms.
The new loan will arrive just in time. As of August, the central bank had only about $5 billion left in foreign currency reserves, enough to cover less than five weeks of imports.
The Asian Development Bank, one of Pakistan’s major lenders, estimates that Pakistan needs $6 billion to $9 billion to meet its obligations, including about $5 billion in outstanding debt on an earlier $11 billion IMF loan package.
Pakistan averted a balance of payments crisis in 2008 by securing the $11 billion IMF loan. This was suspended two years ago after economic and reform targets were missed.
This time around, the government had to fulfill certain conditions set by the IMF before the loan could be approved, including slashing costly subsidies on electricity and sending out notices to 10,000 delinquent taxpayers.
Pakistan has one of the lowest tax-to-GDP ratios in the world. The IMF wants it to do more to tackle rampant tax evasion by the wealthy elite.
Pakistan gets $540 million immediately, and the rest will be disbursed after regular reviews of the programme, the Fund said.

IMF approves $6.7b loan to Pakistan

 

[Leader]

http://www.finance.gov.pk/MEFP_201314_201516.pdf

it should be named slavery nama !

 

[niaz]

it should be named slavery nama !

Agreed; but how many Pakistani will be prepared to live with petrol & diesel shortage in addition to load shedding & gas shedding; no FE for foreign travel and import of cars. Pakistanis will have to tighten their belts until such time we can balance the books, which could mean for a very long time.

To put it another way. You want to marry your daughter in style but you have no money. You either borrow from the money lender and risk losing your land or your daughter ends up a spinster.

Call it what you like. Life sucks.

 

[Argus Panoptes]

Agreed; but how many Pakistani will be prepared to live with petrol & diesel shortage in addition to load shedding & gas shedding; no FE for foreign travel and import of cars. Pakistanis will have to tighten their belts until such time we can balance the books, which could mean for a very long time.

To put it another way. You want to marry your daughter in style but you have no money. You either borrow from the money lender and risk losing your land or your daughter ends up a spinster.

Call it what you like. Life sucks.

Watch for the next round of belt-tightening in December.

 

[PAKISTANI MUJAHIDEEN 12]

Pakistan should not go 2 IMF IMF is an american organisation they impose thier economic policy on other countries nd IMFS economic policies r anti business due 2 which Pakistans economy will further detoriote due 2 Pakistan going 2 IMF nd IMFS economic policies Pakistan shudnt go 2 IMF Pakistans economy will not grow if Pakistan goes 2 IMF. Pakistan should lower its interest rates to 4% from 15% which zardari set up nd the demise of zardaris economic policies were first he was the biggest corrupted dacoit who unfortunately became the president of pakistan nd his dacoit party which looted pakistan for 5 years so corruption was the main problem in peoples party government nd second their economic policies zardari set up interest rates at 15% nd this was the worlds highest interest rates no country can generate gdp nd economic growth from 15% interest rates so lesson for nawaz sharif nd his government is to reduce interest rates from 15% to 4% i bet u if nawaz sharif nd his government lowers interest rates to 4% pakistans economic nd gdp growth will b atleast 8% i bet u ontop of tht pakistan should bring down the dollar value from 100 rupees to 60 rupees for 1 dollar no economy or no country can thrive with a weak currency due to weak domestic currency hyperinflation occurs nd country nd countrys economic systems collapses nd import bill increases in terms of dollars bc u hve to pay more rupees to cover the dollars nd rupees gap due to whch a countrys import bill increases so pakistan should fixed its exchange rates with dollar 1 dollar should b equal to 60 rupees pakistans foreign exchange with u.a.e should b 1 u.a.e dinaar should b of 100 rupees pakistan should fix its exchange rates with u.a.e with similarly for u.a.e bring it up u.a.e dinaar from 1 u.a.e dinaar= 25 rupees pakistan should fix the exchange rates with u.a.e to 1 u.a.e dinaar = 100 rupees so due to this pakistanis living in u.a.e will b able to send less dinars to pakistan nd pakistanis receiving the money will get 4 times the more money as previously due to new exchange rates nd in turn pakistanis living in u.a.e will b saving enough money for themselves also due to which their portfolio nd finances in u.a.e will increase so after 5 years gradually bring down the value of u.a.e dinaar 1 u.a.e dinaar to = 25 rupees after 5 years nd maintain dollars exchange rate to 1 dollar = 60 rupees to next 5 years nd then c the real economic boom pakistan will witness ontop of tht pakistan should sign free trade agreement with every islamic country ontop of tht all islamic countries should form a free trade area same as of e.u nd oic countries all islamic countries should promote free trade with each other nd designate all islamic countries in 1 block as islamic union with free trade area no tarrifs no quotas in trading with each other free trade agreement with islamic countries will increase pakistan nd islamic countries trade by many folds nd this will increase islamic countries gdp by many folds nd increase standard of living of islamic countries by many folds similarly pakistan should sign trade deal free trade agreement with e.u with russia with brazil nd with latin american countries this will increase pakistans gdp nd economy by many folds so i gave u the whole idea nd theory i hope pakistan nd nawaz sharif nd pakistans government will do all the things i stated above nd implement it wat i stated above due to this pakistan will b able to achieve such a economic boom which the world has never seen before. Thanks

 

[Leader]

Agreed; but how many Pakistani will be prepared to live with petrol & diesel shortage in addition to load shedding & gas shedding; no FE for foreign travel and import of cars. Pakistanis will have to tighten their belts until such time we can balance the books, which could mean for a very long time.

To put it another way. You want to marry your daughter in style but you have no money. You either borrow from the money lender and risk losing your land or your daughter ends up a spinster.

Call it what you like. Life sucks.

nation is put to do, what its elite/rulers want.. Pakistani nation knows how to sacrifice, its just these rulers who say, awam ka dollar kha kha ker damag kharab howa v hai...

there is no 180 degree shift, but gradual..atleast show signs !

 

[My-Analogous]

They are asking to tax elite class and that is why they are not good and if they demand to tax middle and lower class then it mean that they are helping Pakistan. GOOD

 

[Saleem]

Agreed; but how many Pakistani will be prepared to live with petrol & diesel shortage in addition to load shedding & gas shedding; no FE for foreign travel and import of cars. Pakistanis will have to tighten their belts until such time we can balance the books, which could mean for a very long time.

To put it another way. You want to marry your daughter in style but you have no money. You either borrow from the money lender and risk losing your land or your daughter ends up a spinster.

Call it what you like. Life sucks.

you dont create nations by drawing lines in the dirt......first ppl have to fave faith....stop worshiping graves and putting on white caps to go to data darbar and other nonsense--have faith in youerself work honestly and answer only to your conscience...

 

[ziaulislam]

govt needs to improve taxes, its crediblity to increase foreign investment and reduce non essential imports like cars, oil(by shifting to coal/gas)
this is the only way it can improve the fiscal imbalance