IMF agrees to lend $6bn to Pakistan: sources

[El Sidd]

What else do IMF demands?

why? You intend to Stop them like You Stopped those already mentioned?

awein shor kyon macha rahe ho. trust our tomato farmer

I think yes...green chaddis could not handle @SunilM ...its a behruni saazis..with khalaiye maklook behind it.

hug a cactus

 

[HalfMoon]

Russians are willing to sell lots of stuff (Air defence system, tanks, aircrafts, helicopters, etc) but they don’t want to finance anything. We can’t finalize any deal until cash in hand.

I know Russians are interested is selling to Pakistan but my question is more around what is Pakistan interested in buying. Last I heard were S-400, Pantsir, MI-28/26/35 & T-90 tanks.

 

[Imran Khan]

good so finally this case closed

 

[ziaulislam]

So its a loan by IMF to Pakistan at Pakistan Terms and its not a fresh loan also (its just renewal of old one, as per another member).

Correct we already owe them 6.7b dollars..so net lending is -0.7b

Though from latest reports it seems IMF Still doesnt want to budge..

For fiscal needs
Pakistan needs at least 2 trillion rupees in revenue measures (to pull federal govt out of primary deficit) and control its circular deficit (level off) while reviving the steel mills, railways and PIA for revenue saving.

For CAD it needs import substitution (oil, tea, pulses, refined petrochemical constitutes almost 20% of our imports) and exports /remittances

If govt achieve above 2 it can achieve sustained 6+ growth

 

[aziqbal]

why do we need more money we raised over $10 billion previously >?

 

[HalfMoon]

why do we need more money we raised over $10 billion previously >?

Pakistan does not need it but the more the better.

1) It will improve Pakistan's credit rating

2) Lenders like China, Saudi Arabia, UAE, IMF all competing against each other means that Pakistan is in the drivers seat to dictate the terms to these lenders

 

[VCheng]

You never know.

maybe he has actual bankers coming over begging him to take money on his own accord.

this is a miracle actually.

Not really a miracle, but we can assign it to The Anointed One just to keep the PDF faith, sure. IMF requirements are pretty standard, and come with a program of regular assessment too. There is a reason its blessings improve credit ratings, and that has to do with its strictly prescribed and monitored conditionalities.

 

[El Sidd]

Not really a miracle, but we can assign it to The Anointed One just to keep the PDF faith, sure. IMF requirements are pretty standard, and come with a program of regular assessment too. There is a reason its blessings improve credit ratings, and that has to do with its strictly prescribed and monitored conditionalities.

should have done more to improve credit rating.

atleast be more than average in this even if totally helpless

 

[Turingsage]

The News says IMF approaching Pakistan on Pakistani terms. Now you Indians want to tell me the if some one wants to give Pakistan $6 billion without any damaging terms is bad for us then there is something wrong with you people. It is just like $6 billion being pushed into our economy and helping our growth. So what is wrong if IMF it's self wants to give us few billions of extra pocket money?

1) You asserted many many many times that Pakistan would never go to the IMF. Wrong as usual

2) IMF does not go around offering money to countries. IMF is a bank of LAST RESORT where countries approach it and ask for STABILIZATION LOANS when the immediate economic stress could lead to a sudden collapse.

3) IMF never offers loans without strict conditions they establish need to be followed in order to bring about the stabilisation. It is part of its charter

4) Pakistan has agreed those terms, and saying IMF is offering loans on Pakistani conditions is a abject deceitful lie. The Pakistani govt and the economy minister has been in talks with the IMF for at least 6 months and has been fully aware of what those conditions are. He has over the past six months or more slowly started meeting some of those conditions voluntarily as he is aware no loan would be forthcoming if he did not do so

5) IMF is not pushing $6 billion, Pakistan is seeking $6 billion and has been for many many months.

6) If IMF were pushing loans as you claim then there are hundreds of countries willing with open arms to accept the cheapest loans going. They do not because conditionality's are ALWAYS APPLIED and reviewed periodically, which implies governments have to disclose where they are spending the money.

7) As the IMF says and the world knows, it is the bank of LAST RESORT when clearly things have gone seriously wrong and well beyond the ability of a government to handle. The first priority on such a scenario is stabilisation and NOT growth as you say

 

[ziaulislam]

Conditions are already complied with....Geo-strategic vis a vis Afghanistan and economics wise a) Increase in utility prices b) Devaluation more then 20% c) PSDP cut d) Increase in Interest rate by more then 400bps ..What else do IMF demands?

Nope
They want interest rate at another 400 base points to 14% and power price rise by another 20%
PSDP was never cut last year PSDP was 670b rupees its 700 this year what PMLN did was to jack up to 1000 without telling where will the revenue come it was illogical budget to begin with. IMF wants fiscak deficit of 3.5 to 4.0% and wanted psdp to cut to 70% of last year(around 500b)

 

[jupiter2007]

I know Russians are interested is selling to Pakistan but my question is more around what is Pakistan interested in buying. Last I heard were S-400, Pantsir, MI-28/26/35 & T-90 tanks.

They won’t sell advanced S-400

I know Russians are interested is selling to Pakistan but my question is more around what is Pakistan interested in buying. Last I heard were S-400, Pantsir, MI-28/26/35 & T-90 tanks.

Through the grape vines (Airforce procurement) I heard Russia offered tank, helicopters (probably MI-28), aircraft and trainer (probably Yak-130).
We request 2 layer defense system and Advance 4 generation aircraft (probably SU-35 or variant).

I don’t think we are interested in any trainer from Russia. Yak-130 is close 15 million each.

 

[ziaulislam]

1) You asserted many many many times that Pakistan would never go to the IMF. Wrong as usual

2) IMF does not go around offering money to countries. IMF is a bank of LAST RESORT where countries approach it and ask for STABILIZATION LOANS when the immediate economic stress could lead to a sudden collapse.

3) IMF never offers loans without strict conditions they establish need to be followed in order to bring about the stabilisation. It is part of its charter

4) Pakistan has agreed those terms, and saying IMF is offering loans on Pakistani conditions is a abject deceitful lie. The Pakistani govt and the economy minister has been in talks with the IMF for at least 6 months and has been fully aware of what those conditions are. He has over the past six months or more slowly started meeting some of those conditions voluntarily as he is aware no loan would be forthcoming if he did not do so

5) IMF is not pushing $6 billion, Pakistan is seeking $6 billion and has been for many many months.

6) If IMF were pushing loans as you claim then there are hundreds of countries willing with open arms to accept the cheapest loans going. They do not because conditionality's are ALWAYS APPLIED and reviewed periodically, which implies governments have to disclose where they are spending the money.

7) As the IMF says and the world knows, it is the bank of LAST RESORT when clearly things have gone seriously wrong and well beyond the ability of a government to handle. The first priority on such a scenario is stabilisation and NOT growth as you say

1. He doesn't matter. Pakistan has not gone yet and nobody knows whether it will, as financial needs are already met. We are in talks for last 6 months
2. Wrong what happened with new Egypt deals they have 30+ b $ of reserves
3. Wrong
4.Wrong IMF lends based upon voting and last got it on easy basis..just look at waivers they got
5.Wrong it seems you lack basic knowledge about lending
6. Wrong IMF loans are cheaper for poor rating govt at 3-4% its not cheaper loans for good ratings countries
7. Again there are countless example that IMF loans were taken for budget financing/growth if reform package is accepted with it..look at recent Egypt loan for example

PS
with 20+ b dollars lined up we dont have any financing needs..real issue will rolling over another 30b loans over 5 years at cheaper rate

 

[Chhatrapati]

5.Wrong it seems you lack basic knowledge about lending

AFAIK, the basic knowledge in lending suggests borrower seeks lending, and not the other way around.

 

[Chakar The Great]

The mere fact that Indians ***@s are o fire, is a proof that IMF money is good for Pakistan.

 

[Nilgiri]

Did any one say we weren't going to IMF?

@BHarwana did.

Anyways I am not judging on good/bad, just wanting some discussion/analysis from the 3 folks I have talked the most with it about.

Correct we already owe them 6.7b dollars..so net lending is -0.7b

Huh? You are implying the previous balance will be written off? Wouldn't this loan (whatever it turns out to be) simply add to the existing balance?