IMF sets very tough conditions for Pak to receive bailout package, shows no flexibility

[AZADPAKISTAN2009]

The people who spread lies are the only who spread fake news of what the currency target should be and then the corrupt traders , all view the target date and collaborate to drop the rates

ISI should be on top of these market minipulators

 

[maithil]

At least Mr Umar in his latest statement in the US has admitted the need for structural reforms. We still need to wait for the final form of the bailout and what, if any, structural changes that are indeed carried out as a result:

https://www.dawn.com/news/1475776/bailout-package-with-imf-almost-worked-out-asad

"Mr Umar said he could not recall the last time a government in Pakistan had not inherited a balance of payments crisis and sought IMF help. “The pattern has remained the same, in 1988, 1999, 2008, 2013 and 2018,” he said, acknowledging that “there is something, obviously, structurally wrong” with the economic policies followed by successive governments.

“While there may be specific decisions that contribute to this, or people who may be responsible, but there is clearly something structural at play which goes beyond personalities and decisions,” he said."

Structural reforms seem to be another vague salesman pitch in developing world. I have no clue about the real steps which come under any such reform.

 

[maximuswarrior]

How would Nawaz have done things differently?

The revenue shortfall is only being exacerbated by the cut in imports (which itself is necessary because of the current account deficit). The only long term solution is a rise in revenue collection through a broadening of the tax net, which is not something Sharif or Zardari had much success with either.

Let me tell you how Nawazoo would have done differently. By borrowing more IMF money and selling more sovereignty. That termite Ishaq Dar has demonstrated how to wreck the economy by borrowing record amount of loans. Today he sits safely in the UK and prays his Friday prayers like nothing happened.

Hell is not enough for people like Zardari and Nawazoo. You need something far worse.

 

[k s ahmed]

o bhai is mulk kay maslon ki wajha PTI kay waday nahi hain, woh to har party karti hai. Is mulk kay problems ki wajha nawaz aur zardari ki 5 5 saal ki hakumatain hain.

No 5 5 . About 40 years, their families have ruled.

 

[LeGenD]

Good points about indirect taxation, which brings up a follow up - we know the average Pakistani is paying indirect taxes in several ways, but are there any statistics (or research) on whether all of that indirect taxation goes back to the government?

Thanks.

Public institutes and officials are mainly involved in indirect taxation per my understanding.

Some pointers.

[1] https://www.brecorder.com/2018/09/25/441724/pakistans-indirect-tax-burden/

[2] http://www.aerc.edu.pk/indirect-taxes-and-economic-growth-an-empirical-analysis-of-pakistan/

[3] https://m.theglobaleconomy.com/Pakistan/indirect_tax_rate/

Government ko tu paisa milta hai parr kuch amount sarkari officials apni jaib mein daal leitey hain.

 

[Pakistani Fighter]

time to send low IQ retards like you out of the country.
Enough is enough.

Time to throw you out

 

[VCheng]

Structural reforms seem to be another vague salesman pitch in developing world. I have no clue about the real steps which come under any such reform.

Let us see what PTI does in the remainder of its term, whether it is truly reformatory, or the same old tired and failed policies delivered by fresh new faces.

The reforms needed are clear about the spending priorities, balance of payments and currency values. The chances of them happening in any meaningful manner are somewhere between slim and none, as always.

 

[Asian.Century]

Terrible.

Thanks to Asad Umar and PTI govt and IMF wants this serious things :

The IMF insists on full disclosure of all financial cooperation between Pakistan and China, including assistance related to infrastructure development, nuclear power plants, joint manufacturing of JF-17 Thunder fighter jets and procurement of submarines. The IMF is also demanding details of more than USD 6.5 billion of commercial loans Pakistan has received from China in the past two and a half years. In July, China also deposited USD 2 billion with the State Bank of Pakistan.The finance minister is likely to visit China on April 25 for talks on the IMF concerns over CPEC and IMF will wait to hear from him before it finalises the bailout package, the daily reported.

 

[Crusher]

Question is why pakistan government is hell bent on taking loan from IMF, don't take the loan if the conditions are not suitable, just tell the people of pakistan that the next few years are going to be very hard for everyone and just cut all kinds of luxury imports and just go back to subsistence life style for next couple of years. Just beat the hell out of IMF team office in pakistan and kick them out of pakistan for ever, if they don't respect pakistan why should pakistan respect them.
It is clear that IMF is behaving as a tool of US against Pakistan-China economic partnership.

 

[valkyr_96]

Question is why pakistan government is hell bent on taking loan from IMF, don't take the loan if the conditions are not suitable, just tell the people of pakistan that the next few years are going to be very hard for everyone and just cut all kinds of luxury imports and just go back to subsistence life style for next couple of years. Just beat the hell out of IMF team office in pakistan and kick them out of pakistan for ever, if they don't respect pakistan why should pakistan respect them.
It is clear that IMF is behaving as a tool of US against Pakistan-China economic partnership.

There is a simple answer just look at the poster above you...there are many others like him. If we dont go for the IMF package then prices will go up load shedding will increase and people will riot. This was all done deliberately by the PMLN government.

 

[Crusher]

There is a simple answer just look at the poster above you...there are many others like him. If we dont go for the IMF package then prices will go up load shedding will increase and people will riot. This was all done deliberately by the PMLN government.

What is big deal in it, this happens in every third world country, also most of the people above 40 years age remember when they didn't even had electricity at all at least in the village areas which make up the majority of the country, that is why I say you cannot become a coward thinking that you wouldn't change because you have got used to some luxuries which are all dependent on loans from organizations controlled by hostile nations towards pakistan.

 

[valkyr_96]

What is big deal in it, this happens in every third world country, also most of the people above 40 years age remember when they didn't even had electricity at all at least in the village areas which make up the majority of the country, that is why I say you cannot become a coward thinking that you wouldn't change because you have got used to some luxuries which are all dependent on loans from organizations controlled by hostile nations towards pakistan.

It is a big deal because while people want an escape they do not have a capacity to take it. What you are missing out is that the old political parties will use this to rouse these same people. We will be back to square one in no time. I'll give you an example why the IMF is strict on structural reforms. IMF gave loan to PPP insisting for privatisation. They said sure but of course they would never do that. PMLN went to IMF for loan, they presented yes of course we have to privatise and they did the whole drama of setting up a committee, financial advisors and such. But it did not happen. Now the IMF wants no ifs and buts it wants actions. The reforms do not take anything out of Pakistan but allows it to manage itself and be self sustainable. The money allows us to ease that process.

 

[tkmd]

It is a big deal because while people want an escape they do not have a capacity to take it. What you are missing out is that the old political parties will use this to rouse these same people. We will be back to square one in no time. I'll give you an example why the IMF is strict on structural reforms. IMF gave loan to PPP insisting for privatisation. They said sure but of course they would never do that. PMLN went to IMF for loan, they presented yes of course we have to privatise and they did the whole drama of setting up a committee, financial advisors and such. But it did not happen. Now the IMF wants no ifs and buts it wants actions. The reforms do not take anything out of Pakistan but allows it to manage itself and be self sustainable. The money allows us to ease that process.

If PMLN had not suffered threats from establishment along with their myopic lotas in PTI as well as the gangster in PPP they would have privatised PIA and PSM. Right their 8 billion a year off our books. But instead we had threats of riots by PPP and PTI while establishment relished it all.

 

[nahtanbob]

Question is why pakistan government is hell bent on taking loan from IMF, don't take the loan if the conditions are not suitable, just tell the people of pakistan that the next few years are going to be very hard for everyone and just cut all kinds of luxury imports and just go back to subsistence life style for next couple of years. Just beat the hell out of IMF team office in pakistan and kick them out of pakistan for ever, if they don't respect pakistan why should pakistan respect them.
It is clear that IMF is behaving as a tool of US against Pakistan-China economic partnership.

the chinese have $3 trillion in reserves. they can definitely provide a $20 billion loan to help out short term issues of pakistan. i never got a straight answer. i assume something is cooking behind the scenes

 

[maithil]

the chinese have $3 trillion in reserves. they can definitely provide a $20 billion loan to help out short term issues of pakistan. i never got a straight answer. i assume something is cooking behind the scenes

Yes. I wonder what's the deal with tranches of 1-2 billion. Why is China not giving 10-15 billion USD aid for such strategic partner. China has even gone to the extent of calling Pakistan her "Israel". With a war chest of 3 trillions, 10-15 billion looks like peanuts.