IMF and Mix-achar Government talks fail

[Wood]

Cool... But no idiot will put money into a sinking ship being run by criminals and Monkeys...

Even if allies do not prefer PDM as you insinuate, elections are only a year away. If Pakistan defaults before then, economy will take 4 or 5 years to recover.

 

[Clutch]

Even if allies do not prefer PDM as you insinuate, elections are only a year away. If Pakistan defaults before then, economy will take 4 or 5 years to recover.

So be it. Hopefully Beggars can't be Choosers won't be running the show.

 

[ghazi52]

,.,.,.,.

 

[Dalit]

Time to add additional pressure by expats. Bare minimum remittances should be sent to Pakistan.

 

[fatman17]

The landmines left by Imran Khan are indeed proving to be effective. However, your joy will be short lived as one way or the other, this Government or the next, Pakistan will have to adhere to IMF demands.

No joy for me. This just illustrates the ineffectiveness and inefficiency of this dysfunctional government. Their only aim is to stay in power for as long as they can at the expense of the people. Cheers

 

[PDF]

Can anyone tell me if fresh elections are called and let's say PTI is back in power, what will be the solution to the economy? New IMF package? How?

 

[TheDarkKnight]

Can anyone tell me if fresh elections are called and let's say PTI is back in power, what will be the solution to the economy? New IMF package? How?

Elections do not produce money or reduce deficit. Its like a man who has cancer and needs chemo, but delays treatment saying “oh I am getting married in 3 months so when my wife comes we will deal with it”. The cancerous cells wont care whether he is getting married or divorced - it needs chemo now otherwise it will continue spreading. And late treatment will be more painful with less chances of survival. This is our economic situation and decision making.

 

[WotTen]

Can anyone tell me if fresh elections are called and let's say PTI is back in power, what will be the solution to the economy? New IMF package? How?

If PTI comes in as a majority without a coalition or electables, then the first thing they should do is to remove all subsidies to the sugar, petroleum, and other mafias.

Next thing would be to reform FBR to go after the super rich and collect income tax.

If PTI does these two things, they will have so much money they could even reduce sales tax on essentials.

 

[Mav3rick]

No joy for me. This just illustrates the ineffectiveness and inefficiency of this dysfunctional government. Their only aim is to stay in power for as long as they can at the expense of the people. Cheers

I think they also have to consider their voter base as the backlash will be severe and there is no doubt about that. I mean Petrol & Diesel are already quite expensive and yet they need to be made quite a bit more expensive which has a compound effect on almost everything.

I also think that the incumbent was under the impression that they would somehow be able to either persuade IMF to resume the program without forcing the under pressure Government to remove the subsidies or wanted to go to IMF with the request that removing the subsidies will not leave any room for further burdening through increase in Taxes (direct or indirect). It is quite possible that the incumbent succeeded in the later and once the cabinet gives the go-ahead to removing the subsidies in phases, the IMF program will resume and IMF will release the next tranche in June/July. Even the confirmation from IMF will open doors to many other lenders which will east the burden on the Government leading to some stability in the next 4-6 months.

 

[fatman17]

I think they also have to consider their voter base as the backlash will be severe and there is no doubt about that. I mean Petrol & Diesel are already quite expensive and yet they need to be made quite a bit more expensive which has a compound effect on almost everything.

I also think that the incumbent was under the impression that they would somehow be able to either persuade IMF to resume the program without forcing the under pressure Government to remove the subsidies or wanted to go to IMF with the request that removing the subsidies will not leave any room for further burdening through increase in Taxes (direct or indirect). It is quite possible that the incumbent succeeded in the later and once the cabinet gives the go-ahead to removing the subsidies in phases, the IMF program will resume and IMF will release the next tranche in June/July. Even the confirmation from IMF will open doors to many other lenders which will east the burden on the Government leading to some stability in the next 4-6 months.

IMF wants % removal of subsidies before any resumption of IMF program. This the dysfunctional government will not do. They will let the caretakers do that.

 

[Mav3rick]

IMF wants % removal of subsidies before any resumption of IMF program. This the dysfunctional government will not do. They will let the caretakers do that.

How can any Government remove subsidies in 1 go? That would be akin to creating a whole new financial catastrophe.

 

[_NOBODY_]

How can any Government remove subsidies in 1 go? That would be akin to creating a whole new financial catastrophe.

It is absolutely necessary to remove all the subsidies and make the market completely free otherwise we will keep facing economic crises like we are now. Of course, the sudden removal of subsidies will cause further inflation and hurt our rent seeking industries but it is necessary. The market must be made free. If the local players can't compete against the foreign players then they can go to hell. Within five years of this new players will emerge to take on the foreign companies and that is when our country will properly start growing. These rent seeking clowns need to be dealt with.

 

[fatman17]

How can any Government remove subsidies in 1 go? That would be akin to creating a whole new financial catastrophe.

That's the condition.

 

[TNT]

Now bajwa should shove this mix achar up his ***. Remember how ISPR said dollar is stabilized and stock exchange up when imported govt was imposed, now same ISPR should be asked about economy. This pathetic govt doesn't have the guts to take tough decisions.

Even i think the US made our establishment a fool, because there is no economic assistance or relief. Pakistani establishment is now like dhobi ka kutta, na gher ka raha na ghat ka lolz, dumb stupid and corrupt baabus.

 

[Mav3rick]

It is absolutely necessary to remove all the subsidies and make the market completely free otherwise we will keep facing economic crises like we are now. Of course, the sudden removal of subsidies will cause further inflation and hurt our rent seeking industries but it is necessary. The market must be made free. If the local players can't compete against the foreign players then they can go to hell. Within five years of this new players will emerge to take on the foreign companies and that is when our country will properly start growing. These rent seeking clowns need to be dealt with.

30 Rupee increase in Petrol prices announced.

The problem is that there is a huge majority in Pakistan for which even a 30 rupee hike in prices is a severe financial penalty. The top 5-10% may not even feel it; the next 15-20% may feel it but the 65-70% population is simply stung by such massive increases in prices, even though there is not much the Government could actually do to shield the masses from the internationally high prices.

That's the condition.

Rs. 30 increase announced.......it will be gradual and steady, as I said earlier. IMF program will also resume.