IMF tells Pakistan: no compliance, no money

[Gazzi]

Thank God...........at least now Pakistan must do things themselves and Inshallah this will improve their institutions

 

[xenia]

IMF tells Pakistan: no compliance, no money
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Monday, April 12, 2010

By Khalid Mustafa

ISLAMABAD: The International Monetary Fund (IMF) has conveyed to Pakistan that the Fund is not an economic arm of the US and will not be influenced by Washington with regard to giving relief to the country. The Fund wants 100 per cent compliance from Pakistan on the issue of implementation of VAT from July 1 and power tariff raise from April 1.

"Te Other Side of Me"--US

 

[ramu]

This is a clear indication of how deep Pakistan is in terms of debt. IMF can get policies such as VAT implemented by voice(read force) speaks for itself.

P.S: I would like to know why my post was deleted. I just invited Riaz to comment on this thread. He has been an advocate of soft loans on several other threads! Is that against the rules ?

moderation needs a rethink!!!

 

[jin]

PPP govt is really entangled between IMF conditionalities and fear of public outrage. In this case resorting to US to use influence is understandable. And US still has dominant role in financial institutions.

 

[TechLahore]

This is a clear indication of how deep Pakistan is in terms of debt. IMF can get policies such as VAT implemented by voice(read force) speaks for itself.

I don't think you can conclude this at all. The imposition of VAT is supported by many Pakistani economists and from what I know - Abdul Hafeez Sheikh and his team. This is by no means a policy being 'inflicted' top down by the IMF.

 

[Justin Joseph]

I don't think you can conclude this at all. The imposition of VAT is supported by many Pakistani economists and from what I know - Abdul Hafeez Sheikh and his team. This is by no means a policy being 'inflicted' top down by the IMF.

VAT should be implemented as soon as possible. We in India have implemented it on all India level years ago and the revenue of the govt. is raised remarkably.

Now, we are going to implement the GST, the next level. That is Good and Service Tax. This will make our Goods and services cheaper and competitive in world market as well as increase the revenue of the govt. Also, it will cut the red tape and double taxation. Plus will not leave any chance to escape from tax.

So, no if or but implement VAT.

 

[karan.1970]

I don't think you can conclude this at all. The imposition of VAT is supported by many Pakistani economists and from what I know - Abdul Hafeez Sheikh and his team. This is by no means a policy being 'inflicted' top down by the IMF.

I think he means that IMF has enough clout to push Pakistan for expediting it by linking its implementation to the tranches of the bailout package...

Not that its a policy which is not for Pakistan's benefit..

 

[ramu]

I don't think you can conclude this at all. The imposition of VAT is supported by many Pakistani economists and from what I know - Abdul Hafeez Sheikh and his team. This is by no means a policy being 'inflicted' top down by the IMF.

I am not concluding anything that is not logical. Going ahead with VAT requires atleast 6 months of ground work to prepare the country for taking it on. Pakistan from all the articles on the Net was inclined to postpone introduction. But with pressure from IMF may have to introduce it even if the country is not fully prepared to take in on.