Pakistan goes to beg IMF.

[Kompromat]

Pakistan seeks IMF bailout​

ISLAMABAD, June 18: Pakistan and the International Monetary Fund (IMF) are opening on Wednesday week-long discussions on Islamabad’s latest fiscal and macroeconomic adjustments and its request for a possible $5 billion bailout package for repayment of the fund’s outstanding loans.

A senior official of the ministry of finance said the government had made a fiscal adjustment of about 2.5 per cent of GDP in its budget for 2013-14 to reduce fiscal deficit from 8.8pc to 6.3pc of GDP during the next financial year and hoped it would convince the IMF into agreeing on a new Extended Fund Facility (EFF) of about $5bn repayable in 10 years.

Pakistan’s top priority during the talks will be to secure a letter of comfort from the IMF to pave the way for resumption of programme loans by the World Bank and the Asian Development Bank held up since 2009 after suspension of the IMF programme on failed reforms.

Pakistan will also brief the IMF mission on its plans to settle over Rs503bn of energy sector circular debt before the middle of August and a roadmap to restructure the power sector and further fiscal adjustment of 1.3pc of GDP in 2014-15 and 1pc of GDP in 2015-16 to bring down fiscal deficit to about 4pc of GDP.

The official said that as part of preparations for talks with the IMF, the government has decided to avoid quarterly increases in electricity and gas tariffs — an old demand of the fund to bring energy prices to market-based tariffs by eliminating all subsidies.

Finance Minister Ishaq Dar told journalists recently that the IMF mission would remain in Pakistan from June 19 to July 3 for substantive talks and post-programme monitoring of the existing programme but a senior official said the talks were expected to be concluded by June 26.

The two sides are required to hold biannual review of Pakistan’s economic situation as part of Post-Programme Monitoring (PPM). At the end of discussions, Pakistan is expected to make a formal request to the IMF for a new EFF programme. The mission will submit Pakistan’s request as well as its assessment report to the IMF executive board.

The official said the authorities were comfortable with foreign exchange reserves till the end of July even after repayment of about 450m special drawing rights (IMF currency) – about $675m.

However, the authorities are not comfortable about some heavy repayments due to the IMF in October-November when Pakistan has to repay 1.685m SDRs ($2.5bn) that could reduce reserves to a critical level and put pressure on exchange rate.

Pakistan seeks IMF bailout - DAWN.COM

 

[Leader]

to pay loans, we are seeking loan !!

 

[arushbhai]

You guys can thank Imran khans secret guru Zardari. If the govt puts taxes on people to repay the debt, you guys have a problem. If the govt seeks a bail out loan, you guys have a problem. Your leader imran khan has made you guys "Khabti". You guys have become mentally sick. Please come out of your rotten mentality and leave the negativity behind and lets move forward.

 

[Kompromat]

You guys can thank Imran khans secret guru Zardari. If the govt puts taxes on people to repay the debt, you guys have a problem. If the govt seeks a bail out loan, you guys have a problem. Your leader imran khan has made you guys "Khabti". You guys have become mentally sick. Please come out of your rotten mentality and leave the negativity behind and lets move forward.

Its your turn to shut up and face facts?

 

[indian_foxhound]

only 3 percent of pakistani pay tax but they expect world class service.... how government iz managing I m wondring... think the day us will stop giving aids... so best stop terror factory and move up pay taxes you wont need to beg.... BTW some of pakistnai where saying we have china for loans we wont need imf n all now what happened to them....

 

[anonymus]

Its your turn to shut up and face facts?

What he is saying is correct. If you are not in favor of raising taxes then only option left is begging from someone.

Pakistanis seem to have forgotten this simple economic logic.

 

[Silverblaze]

What he is saying is correct. If you are not in favor of raising taxes then only option left is begging from someone.

Pakistanis seem to have forgotten this simple economic logic.

Pakistanis who voted for Nawaz forgot this principle. The Nawaz Govt is solely responsible for budget disasters.

 

[Icewolf]

only 3 percent of pakistani pay tax but they expect world class service.... how government iz managing I m wondring... think the day us will stop giving aids... so best stop terror factory and move up pay taxes you wont need to beg.... BTW some of pakistnai where saying we have china for loans we wont need imf n all now what happened to them....

I think that is a bit too over exaggerated. No country can survive with 3% ppl paying taxes. Don't listen to Imran khan made up "facts"

 

[Awesome]

to pay loans, we are seeking loan !!

More like we are paying credit card bill with another credit card and that too we are paying minimum payment.

 

[acid rain]

I think that is a bit too over exaggerated. No country can survive with 3% ppl paying taxes. Don't listen to Imran khan made up "facts"

India is no better, we are hardly 4%, both of us are on the same boat - what is sustaining our economies is heavy indirect taxation - but the idiots dont consider the fact that indirect taxation increases inflation, decreases our competitiveness, decreases domestic industrial output and gives undue advantage to heavily subsidized and cheap imports from China.

 

[Edevelop]

Not the fault of PML-N. They were put into terrible financial crisis period by PPP and IMF option had to be realized. Hopefully the money would be used in the right areas to get the economic growth rate moving positively and sooner than later, they pay the money back.

 

[VelocuR]

This is happening because dishonesty-unloyal Pakistan citizens doesn't want to pay taxes or improve their country. Foreign Loan will hurt Pakistan for more hundred years without taxes given by us.

Pakistan seeks IMF bailout​

ISLAMABAD, June 18: Pakistan and the International Monetary Fund (IMF) are opening on Wednesday week-long discussions on Islamabad’s latest fiscal and macroeconomic adjustments and its request for a possible $5 billion bailout package for repayment of the fund’s outstanding loans.

A senior official of the ministry of finance said the government had made a fiscal adjustment of about 2.5 per cent of GDP in its budget for 2013-14 to reduce fiscal deficit from 8.8pc to 6.3pc of GDP during the next financial year and hoped it would convince the IMF into agreeing on a new Extended Fund Facility (EFF) of about $5bn repayable in 10 years.

Pakistan’s top priority during the talks will be to secure a letter of comfort from the IMF to pave the way for resumption of programme loans by the World Bank and the Asian Development Bank held up since 2009 after suspension of the IMF programme on failed reforms.

Pakistan will also brief the IMF mission on its plans to settle over Rs503bn of energy sector circular debt before the middle of August and a roadmap to restructure the power sector and further fiscal adjustment of 1.3pc of GDP in 2014-15 and 1pc of GDP in 2015-16 to bring down fiscal deficit to about 4pc of GDP.

The official said that as part of preparations for talks with the IMF, the government has decided to avoid quarterly increases in electricity and gas tariffs — an old demand of the fund to bring energy prices to market-based tariffs by eliminating all subsidies.

Finance Minister Ishaq Dar told journalists recently that the IMF mission would remain in Pakistan from June 19 to July 3 for substantive talks and post-programme monitoring of the existing programme but a senior official said the talks were expected to be concluded by June 26.

The two sides are required to hold biannual review of Pakistan’s economic situation as part of Post-Programme Monitoring (PPM). At the end of discussions, Pakistan is expected to make a formal request to the IMF for a new EFF programme. The mission will submit Pakistan’s request as well as its assessment report to the IMF executive board.

The official said the authorities were comfortable with foreign exchange reserves till the end of July even after repayment of about 450m special drawing rights (IMF currency) – about $675m.

However, the authorities are not comfortable about some heavy repayments due to the IMF in October-November when Pakistan has to repay 1.685m SDRs ($2.5bn) that could reduce reserves to a critical level and put pressure on exchange rate.

Pakistan seeks IMF bailout - DAWN.COM

 

[Spring Onion]

What he is saying is correct. If you are not in favor of raising taxes then only option left is begging from someone.

Pakistanis seem to have forgotten this simple economic logic.

Those who are seeking loans are tax defaulters not the entire Pakistan.

Poor are paying for IMF loans.

More IMF the more power tarif / more inflation in form of extra taxes on poor

 

[T90TankGuy]

I feel the priority of the pak govt is flawed. they need to look at getting stability (rid of militancy) economic stability will surely follow. at the moment people are not willing to invest in Pakistan due to the security threats. remove that and the economy will shape up.
of course we are talking about a time frame of over a decade but there are no shortcuts to this.

 

[Cherokee]

to pay loans, we are seeking loan !!

To Pay interests actually .