Confirms 4.1% for 2013-14,Forecast 4.3% for 2013-14 :IMF

[farhan_9909]

WASHINGTON: The International Monetary Fund (IMF) endorsed economic policies of the government on Monday and revised Pakistan’s GDP growth for this fiscal year to 4.3 per cent from 4.1pc.

The endorsement may help the government deal with the pressures generated by more than a week of unrelenting protest marches and rallies in Islamabad. Indications of a strong economy may further weaken PTI’s campaign for forcing the government to resign by causing a financial collapse.

An IMF team, led by the Fund’s mission chief in Pakistan Jeffrey Franks, visited Dubai from Aug 6 to 18 to conduct discussions on the fourth review of the country’s IMF-supported programme under the Extended Fund Facility.

The team had earlier refused to visit Islamabad due to PTI and PAT’s protest marches, compelling Finance Minister Ishaq Dar to visit Dubai for the talks.

The Fund is expected to release another tranche of $550 million early next month from the $6.67 billion bailout package for Pakistan.

“The IMF is encouraged by the overall progress made in pushing ahead with policies to strengthen macroeconomic stability and reviving investment and growth,” said a statement issued in Washington after the fourth review.

“Economic indicators are generally improving, with growth continuing to gain momentum, inflation on a downward trajectory, and credit to the private sector rebounding sharply.”

According to the IMF, the country’s “GDP growth is now expected to rise by 4.3pc in fiscal year 2014-15 (to June 30), compared to a provisional estimate of 4.1pc in FY2013-14.”

Mr Franks described his discussions with Mr Dar and his team as “useful”, and noted that the government’s reform programme was broadly on track through end-June.

The mission made excellent progress toward agreement on key policy issues going forward. “Discussions will be continuing in the coming days via videoconference from Washington, DC, with the aim of securing a timely completion of the fourth review,” he said.

“The mission reaffirms the IMF’s support to the government’s efforts to implement their economic reform agenda,” the statement said.

Earlier, Mr Dar told reporters in Dubai that the IMF had cancelled its visit to Islamabad where they were going to stay in a hotel just a few hundred meters from the PTI sit-in.

Published in Dawn, August 19th, 2014

IMF lifts growth forecast for Pakistan - Newspaper - DAWN.COM

 

[Fracker]

Bloody paid IMF.

 

[Hyde]

Not a surprising news for sane readers.

The acknowledgement of World Bank was enough for me... These guys have no influence of International countries except major stakeholders such as the USA so they wouldn't meddle with the facts

Here is a statement by the IMF: Press Release: Statement on Pakistan

PS: Shame for PML-N for having only 4.1% growth

PS: It's a provisional adjustment - keep this in mind

 

[farhan_9909]

Not a surprising news for sane readers.

The acknowledgement of World Bank was enough for me... These guys have no influence of International countries except major stakeholders such as the USA so they wouldn't meddle with the facts

Here is a statement by the IMF: Press Release: Statement on Pakistan

PS: Shame for PML-N for having only 4.1% growth

PS: It's a provisional adjustment - keep this in mind

Well 4.1% is not bad for this year but 4.3% for next year is concerning mark.I just hope they atleast achieve something close to 5% if not the target 5.1% Growth rate

 

[Chak Bamu]

Screw it all. We do not deserve growth beyond 4%.

A country of madaris and hangama politicians deserves to be stuck below 5%. Even 4% is too much for the likes of us.

 

[Norwegian]

That's lame. We have no continuous electricity, gas, clean water, yet this huge economic growth. Something is fishy.

 

[EagleEyes]

Bloody paid IMF.

Slightly off topic but do we pay interest on IMF payments.

 

[Luftwaffe]

Chak Bamu, post: 6078269, member: 144288"]Screw it all. We do not deserve growth beyond 4%.A country of madaris and hangama politicians deserves to be stuck below 5%. Even 4% is too much for the likes of us.[/quote]

Yeah and screw businessmen politicians who have illegally wire billions of pounds and dollars and businesses to UK/saudi, turkey and u.a.e and yet want to be in power to fill their coffers and similarly screwed are their followers.

 

[Hyde]

That's lame. We have no continuous electricity, gas, clean water, yet this huge economic growth. Something is fishy.

Well if we had abundance of electricity and gas, we would be posting growth rate of around 7% +

We don't have such facilities for 24 hours, hence only 4.1% growth

 

[Norwegian]

Well if we had abundance of electricity and gas, we would be posting growth rate of around 7% +

We don't have such facilities for 24 hours, hence only 4.1% growth

Even countries with abundance of gas and electricity can't project such high growth rates. If high inflation and taking historic debts from IMF is growth then its a lie.

 

[Hyde]

Slightly off topic but do we pay interest on IMF payments.

Yep, of course they do

Q13. What will the charges be for this loan? Is Pakistan paying more than other countries who are borrowing from the Fund? Why were the previous loans to Pakistan much cheaper?

A. Pakistan is paying the same rate as other countries that have stand-by arrangements. Stand-by arrangements are subject to the IMF's market-related interest rate, known as the "rate of charge," and carry a level based surcharge. Large loans, i.e., credit above 200 percent of a member’s quota carry a surcharge of 100 basis points above the regular rate of charge, and the surcharge rises to 200 basis points for use of credit above 300 percent of quota. Based on today's interest rates, the average charge that Pakistan would pay when it has the full amount of $7.6 billion outstanding is about 3 percent.

In the past, Pakistan had both stand-by arrangements and an arrangement under the Poverty Reduction and Growth Facility (PRGF). Loans under the PRGF carry an annual interest rate of 0.5 percent. However, PRGF loan amounts available are limited to a maximum of 185 percent of quota for the initial three-year arrangement, and then to 90 percent of quota for second time the facility is used. Given Pakistan's large financing needs, borrowing under the PRGF was not an option.

Source: Questions and Answers on the IMF Pakistan Program

 

[EagleEyes]

Well if we had abundance of electricity and gas, we would be posting growth rate of around 7% +

We don't have such facilities for 24 hours, hence only 4.1% growth

So Pakistan government is freely participating in haram.

 

[Hyde]

Even countries with abundance of gas and electricity can't project such high growth rates. If high inflation and taking historic debts from IMF is growth then its a lie.

Sir it is hard to debate with my PTI friends since most of them are teenagers and they wouldn't want to go into technicalities. I am now ex-PTI since the day they launched anarchy march and really furious so apologise if I chose wrong selection of words unintentionally. We will have a good discussion over it some other time. Stick with PDF and keep posting in the economy section.

In short sentence: The potential of under developing nations is way more than developed nations and if the developing nation's progress was halted by unnatural reasons, it has a potential to grow even at faster pace. It's a simple fact, you don't have a bridge, you make a bridge. Those who already has a bridge wouldn't need to make another bridge.

4% by no means is a high growth rate for developing nations. In fact it is somewhat in the bottom line for developing nations. It would be miracle come true if such growth rates were posted by UK, France, USA, Japan or Germany but it is not a surprise how nations like Turkmenistan, Mongolia, China or Tajikistan post over 7-12% on consistent basis.

So Pakistan government is freely participating in haram.

You truly are not a WebMaster

You are an impostor

They of course are involved in interest since the inception of Pakistan. We pay about 1200+ billion rupees each year for debt servicing (literally meaning pay off interest rate)

 

[EagleEyes]

You truly are not a WebMaster
You are an impostor
They of course are involved in interest since the inception of Pakistan. We pay about 1200+ billion rupees each year for debt servicing (literally meaning pay off interest rate)

No wonder Allah has waged war against us!

 

[VCheng]

No wonder Allah has waged war against us!

Allah does not take sides in wars. Please always remember that.