Pakistan economy is on the verge of collapse: Financial Times

[epebble]

More rigid conditions by the IMF

IMF seeks political consensus for revival of $6.5b bailout | The Express Tribune

Expresses concerns opp may create hurdle in implementation of tough economic decisions

tribune.com.pk

They are not really 'rigid conditions' but natural questions that arise from the simple fact that Pakistan does not have a history of continuity of policy when the government changes. Each government behaves as if they are starting the country from scratch and the first comment they make is that the previous government was all made of thieves and robbers and wanted to rob you whereas we are all angels and saints and only want to serve you selflessly.

 

[epebble]

They are not really 'rigid conditions' but natural questions that arise from the simple fact that Pakistan does not have a history of continuity of policy when the government changes. Each government behaves as if they are starting the country from scratch and the first comment they make is that the previous government was all made of thieves and robbers and wanted to rob you whereas we are all angels and saints and only want to serve you selflessly.

On the other hand, this is the type of skullduggery Pakistan's financial planners routinely indulge in and IMF (and others) doesn't like:

IMF unimpressed by plan to contain Rs952b circular debt​

IMF unimpressed by plan to contain Rs952b circular debt | The Express Tribune

Lender seeks tariff measures against unbudgeted subsidies

tribune.com.pk

The Power Division prepared the revised plan to eliminate the Rs975 billion circular debt that it had now projected as against the earlier commitment to the IMF to keep the flow zero. However, the plan did not pass through the IMF scrutiny due to faulty assumptions and heavy reliance on getting Rs675 billion more subsidies.

This is a common problem in Pakistan's budgets. Unwarranted assumptions and random 'subsidies' inserted just to balance the books. Sometimes there is internal contradiction as the subsidy is unbudgeted anywhere else. i.e., it is manna from heaven. Generally, for a careful reader, it is obvious that it is not a serious document but something that has been put together quickly to satisfy someone and get the cash flow started.

 

[maithil]

On the other hand, this is the type of skullduggery Pakistan's financial planners routinely indulge in and IMF (and others) doesn't like:

IMF unimpressed by plan to contain Rs952b circular debt​

IMF unimpressed by plan to contain Rs952b circular debt | The Express Tribune

Lender seeks tariff measures against unbudgeted subsidies

tribune.com.pk

The Power Division prepared the revised plan to eliminate the Rs975 billion circular debt that it had now projected as against the earlier commitment to the IMF to keep the flow zero. However, the plan did not pass through the IMF scrutiny due to faulty assumptions and heavy reliance on getting Rs675 billion more subsidies.

This is a common problem in Pakistan's budgets. Unwarranted assumptions and random 'subsidies' inserted just to balance the books. Sometimes there is internal contradiction as the subsidy is unbudgeted anywhere else. i.e., it is manna from heaven. Generally, for a careful reader, it is obvious that it is not a serious document but something that has been put together quickly to satisfy someone and get the cash flow started.

Amazing.. cooking books even at such crucial time.

 

[epebble]

Amazing.. cooking books even at such crucial time.

That is the fundamental reason Pakistan has to go through a full colonoscopy for every billion dollars while a normal country sends a report or two, a meeting or two are held and money is paid out. All, typically in a matter of months. IMF is supposed to be an emergency aid. If the audit takes 18 to 24 months, you know what the problems are.

 

[villageidiot]

Talking of which, I have been surprised by the extreme strangeness of behavior of the finance minister Dar. The country is on the verge of economic collapse, and he posts a verse on his twitter. I have been visiting his Twitter for a few months and NOT ONCE has there been any policy, position paper, discussion, white paper. Nothing. But plenty of prayer requests and beseeching the divinity to intercede. We would be shocked if we had a financial crisis and our Fed Chairman or Treasury Secretary resorted to posting prayer requests for divine intervention. I don't see this issue mentioned at all. This obviously shows he is genuinely clueless and has lost his marbles.

I mean, he's literally gone and said, Pakistan is in God's hands now the other day