Doomsday scenario: IMF paints a gloomy picture of Pakistan’s economy

[Bobby]

As long you blame others for your own mistake and teach wrong history to your kids.....nothing will change.

 

[ashok321]

IMF, World Bank, Asian Development Bank are all rapist's.

That being the case, why did you allow them to rape Pakistan for all those 65 years.....
That is the crux of the matter.

 

[Ayush]

IMF has never been so kind in 65years history of Pakistan, as it has been to Zardari.

IMF has handed so much money to Zardari as it has not even collectively lent in Pakistan's 65+ years history.

Now Zardari is leaving and IMF is rescaling its position to old times.

Zardari a magic man indeed... but all those who are comfortable doing business with Zardari, must consider is reputation in Pakistan.

Some one need to ask IMF.. why they keep lending to corrupt people? and for what reasons? and what is the rules within IMF, while dealing with corrupt and risky people?

I think all agreements Zardari concluded, would be denied by the next govt.

It is not only the IMF who have sensed it but the bhartis are also upset for loosing Zardari.

You can see the OP is from a disappointed bharti!

disappointed bharti?

learn about economics first.

IMF has never been so kind in 65years history of Pakistan, as it has been to Zardari.

IMF has handed so much money to Zardari as it has not even collectively lent in Pakistan's 65+ years history.

Now Zardari is leaving and IMF is rescaling its position to old times.

Zardari a magic man indeed... but all those who are comfortable doing business with Zardari, must consider is reputation in Pakistan.

Some one need to ask IMF.. why they keep lending to corrupt people? and for what reasons? and what is the rules within IMF, while dealing with corrupt and risky people?

I think all agreements Zardari concluded, would be denied by the next govt.

It is not only the IMF who have sensed it but the bhartis are also upset for loosing Zardari.

You can see the OP is from a disappointed bharti!

disappointed bharti.

learn about economics first.

 

[Bobby]

IMF, World Bank, Asian Development Bank are all rapist's.

In Pakistan case ...yes....

 

[BATMAN]

Sir are you sure Zardari is going?

I'm sure because... democracy in Pakistan means muk muka.

Illuminati Khan has been promised a rule, in exchange to prolong zardari rule.

Have you not seen, how deadly Pakistani political opportunists (collectively) turn against the request of political reforms and transparency in elections?

Dr. Qadri has changed the rules of the game.

 

[BATMAN]

disappointed bharti?

learn about economics first.


disappointed bharti.

learn about economics first.

All I know most of IMF loan was used to subsidize transit aid to Indians.

Its about time some one would demand back charge and there fore disappointment is written all over bharti faces!

STOP TRANSIT AID TO BHARTIS.

STOP SUPPLYING PETROL TO BHARTI ARMY SETTLED IN AFGHANISTAN.

 

[Ayush]

All I know most of IMF loan was used to subsidize transit aid to Indians.

Its about time some one would demand back charge and there fore disappointment is written all over bharti faces!

STOP TRANSIT AID TO BHARTIS.

STOP SUPPLYING PETROL TO BHARTI ARMY SETTLED IN AFGHANISTAN.

I really like your obsession with the word BHARTI.

 

[niaz]

Sir it will be the poor who will suffer. The rich people and landlords will be living with same luxuries. The desperation of common man will increase and what we saw at people turn out for Qadri, we can expect more will follow anyone who sells them idea of basic amenities.

This is a dangerous situation. Also economic stability is much more important for Pakistan right now considering the internal issues it is facing. If economy deteriorates because Pakistan don't get loans from monetary institutions like IMF, WB, ADB etc., things will spiral out.

Right now Pakistan needs these loans and also bring economic changes like increasing tax collection and bill payment.

Of course there would be hardship ad as usual poor people would suffer more. Nevertheless it is the ultimate truth that you cannot indefinitely carry on spending more than you earn.

It is not rocket science to know that obvious measures to be taken are:

A. Cut down imports by:
1. Banning import of all food items that are produced in Pakistan. For example most affluent people eat ‘lurpak’ imported butter instead of having to do with Pakistani produce.
2. Banning import of all luxury gopds and foreign manufactured cars. Everyone should use locally made/assemble cars.
3. Banning import of all items such as clothes etc. that can be locally manufactured.

B. Cut down Gov’t expenditure especially items involving FE element by:

1. Severely restricting foreign travel on gov’t business and cutting down number of hangers on the President/PM & other ministers can bring along when they travel including Hajj or Umra on Gov’t expense.
2. Restricting expenses of the President, Prime minister and Governor houses.
3. Restricting number of ministries & advisers.
4. Ban on public sector new employment
5. Reducing existing employment by eliminating all duplication.
6. Privatize the white elephants such as PIA & Railways & WAPDA.

and

C. Increasing income by:

1. Taxing all income including agricultural income.
2. Meticulous follow up on income tax by asking for explanation of the extravagant style of living especially of the Customs & Excise & Income tax department staff.
3. Closing down loopholes of tax avoidance.

All of the above have been tried many times by different countries and met with success. But all these actions do is improve short term balance of payment and improve tax to GDP ratio.

Long term cure is sustained GDP growth for which you need investor confidence and continuous FDI. None of these is currently happening in Pakistan. For example, how can we expect growth in Quetta or Peshawar or Karachi when a person leaving his house in the morning to earn his daily bread is not sure whether he will be alive to return home in the evening? Investor is afraid that he or his family will be kidnapped for ransom.

Once it is guaranteed that life of the workers and of foreign staff is safe; flight of capital will disappear and FDI will flow in. Thus utmost priority needs to be given to tackling sectarian and religious terrorism. I am hoping against hope that some cruel Messiah will emerge following the chaos that would result when Pakistan defaults on her debts; sure thing if IMF refuses to bail Pakistan out. One can arguably ask ‘Would the economic hardship immediately following Pakistan going bankrupt would be worth the possible long term benefit?’

In my view, there are only two options available to Pakistan, either reform herself or end up as a failed state. Knowing my countrymen, I doubt if we would ever reform if we keep getting bailed out. Refusal of IMF bailout package may force us to reform ourselves.

It is also stupid to deny that Pakistanis could possibly fail to/ or are unable to reform and all we get is severe economic hardship. It is the fear of this possibility that has forced successive Pakistani governments to go to IMF with a begging bowl.

I admit that my views are highly controversial and would welcome constructive criticism.

 

[ashok321]

All I know most of IMF loan was used to subsidize transit aid to Indians.

Its about time some one would demand back charge and there fore disappointment is written all over bharti faces!

STOP TRANSIT AID TO BHARTIS.

STOP SUPPLYING PETROL TO BHARTI ARMY SETTLED IN AFGHANISTAN.

Oye baba, the loan is going on since Pakistan became a nation.....lol

 

[jnd3x0]

we will be bound to suffer until we clear our current leadership with people devoted to serve country not their bank accounts, we have to as civil system allows or otherwise by force!

 

[KRAIT]

@niaz Sir you are spot on security condition. In a talk show, Najam Sethi told an interesting case. He said, Indian IT and other industry related people approached govt. to stop using N word (Nuclear) because it creates a wrong image of country and affects business. Soon it became a norm of Indian Foreign Policy to avoid war like situations and quickly diffuse it as it affects economy pretty bad.

As for measures regarding Govt.s are concerned, Pakistani people should also be made responsible. Most of the people don't pay taxes saying why pay Tax or bills if it is going to corrupt politicians pockets. hence we have a situation stagnant.

Another thing is elite class of Pakistan should invest the money for generating more money rather than spending it on luxuries. Most of the Indian families with better economic conditions in past, invested in new avenues. Like in case of my friend, he has a family business but he had interest in Computer Science so he invested in Consultancy firms of his own along with other people from different economic background.

Another is generation of new industries. Pakistani people are not trying to extend their industrial base in terms of variety. India created IT industry from call centers to now advance solutions and consultancy to customers like Boeing etc. Indian IT companies are now investing heavily in R&D.

Another thing is micro financing and Bangladesh is a good case study. Small business generation at small towns and villages is important. See, even if you can't provide higher education but secondary and some vocational training, small businesses can grow easily. Its also a great field for investment as risk factor is relatively low for investor. Like in case of Rajasthan, women were trained to make solar lights and other equipments from solar panels and most of them now earn decent money.

Modi once commented on PM when PM said we are going to open 5000 technical institutes. He said, learn from China, we need technical work force, we need to open at least 50,000 technical institutes.

I know condition of India and Pakistan are not similar but Pakistan has an added advantage of China and it can use it for attracting more investment by taking help of theirs in establishing required technical and industrial base, knowledge transfer and if possible, establishing their companies with strict % of local labors to be employed.

Another major aspect is optimization and energy generation by private sector. Another classmate of mine has started his own company for solar heaters and they target hotels and big insitutes. Since my hometown is a tourist spot, he asked me how is the situation here, I read his presentation and believe me, it was so practical and beneficial for hotel owners. Especially when 5 start hotels like Oberois generate their own electricity. If govt. doesn't provide them energy, so instead for cursing govt., businessmen should pool to create a solar farm so that benefit to cost ratio increases.

So to summarize this, people of Pakistan especially the business class should make their own efforts. Once they have good lobby, they can pressurize govt. for reforms, for change in economic policies and if possible in Foreign Policy. Education and technical institutes establishment, promotion to small businesses and creating industrial corridors.

 

[rollercommando]

That being the case, why did you allow them to rape Pakistan for all those 65 years.....
That is the crux of the matter.

They rape all third world countries including India, Bangladesh, Sri Lanka, etc.... not just Pakistan

 

[nwmalik]

because IMF is not going to give any loan to Pakistan....

last 65 years Pakistan is taking loan and living on loans....

Pakistan does not seem to be alone.
Check this
List of countries by external debt - Wikipedia, the free encyclopedia

 

[ashok321]

Originally Posted by rollercommando
IMF, World Bank, Asian Development Bank are all rapist's.

They rape all third world countries including India, Bangladesh, Sri Lanka, etc.... not just Pakistan

And....who is the complainant?
A PAKISTANI, no Indian, Sri Lankan, or Bangladeshi who got billion dollars soft loan from kaferland such as India....

 

[somebozo]

IMF has never been so kind in 65years history of Pakistan, as it has been to Zardari.

IMF has handed so much money to Zardari as it has not even collectively lent in Pakistan's 65+ years history.

Now Zardari is leaving and IMF is rescaling its position to old times.

Zardari a magic man indeed... but all those who are comfortable doing business with Zardari, must consider is reputation in Pakistan.

Some one need to ask IMF.. why they keep lending to corrupt people? and for what reasons? and what is the rules within IMF, while dealing with corrupt and risky people?

I think all agreements Zardari concluded, would be denied by the next govt.

It is not only the IMF who have sensed it but the bhartis are also upset for loosing Zardari.

You can see the OP is from a disappointed bharti!

Well thats a very clear sign that someone is getting kick backs from Zardari on this.
Which means...woh to zardari ka bhe baap nikla!