Pakistan hasn't defaulted but simply falling deeply into arrears
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Jango
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That is what we are doing, no? Asked China and KSA to give us some leeway so we can pay off the commercial loans and bonds. We paid off the loan from Citibank in December if I am not wrong through such a scheme.
Again, isn't that what we are doing?
truthseeker2010
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I don't think pakistan has raised funds through bonds. It is using its reserves or aid from IMF and ADB. It has asked for additional funds from KSA, to which the KSA has not even allowed to touch its already 3 bn in sbp reserves until now. The same should be inferred for Chinese funds in SBP reserves as well.
ghazi52
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December 13, 2022
Former finance minister Miftah Ismail during an interview with Geo News. — screengrab
PML-N leader and former finance minister Miftah Ismail on Tuesday claimed that Pakistan’s default risk won’t subside until and unless the International Monetary Fund (IMF) came to the table.
“IMF is the lender of last resort […] and when it comes on board, other lenders like the World Bank and Asian Development Bank agree to provide us with loans.
“But if that connection with the IMF breaks or a programme is suspended then other loans stop as well and after that you can’t save Pakistan,” he said in an interview with journalist Shahzeb Khanzada on Geo News.
Pakistan entered a $6bn IMF programme in 2019 and its ninth review is currently pending with remote talks being held between IMF officials and the government for the release of $1.18bn.
Earlier, Dawn reported that Pakistan and IMF had had a round of engagement on November 18 but could not finalise a schedule for formal talks on the overdue ninth review.
The talks, originally due in the last week of October, were rescheduled to Nov 3 and then kept on facing delays following gaps in estimates by the two sides.
Earlier this month, incumbent Finance Minister Ishaq Dar said that he was not concerned whether the IMF team arrived or not for the ninth review, asserting that the IMF could “not dictate” the government.
Dar added that he had told the IMF that it was “behaving abnormally” in regard to dealing with Pakistan. “I have never taken dictation and never will from these institutions, I have to look after Pakistan’s interests.”
During the interview with Geo News today, Miftah — in contrast with Dar’s statement — said that “Pakistan has gone back into jeopardy and the situation won’t get better until IMF comes on the table”.
“When IMF gives you a loan, this means they are helping you out. But saying that the Fund is unreasonable […] we need to look at ourselves […] why did we go to IMF previously. Dealing with the IMF is not an easy task.”
He stressed that the country needed to do some things to bring the IMF mission to Pakistan, saying that funds from neighbouring countries could only last the country for so long.
In response to a question on the agreement reached with the IMF during his tenure as the finance minister, Miftah said that all the arrangements had been made before he was replaced with Dar.
“Qatar had promised $3bn, UAE had committed to $2bn and Saudi Arabia had promised $1bn. They had told this to IMF. Separately, our negotiations were underway with the World Bank and they too gave us a commitment along with ADB.
“But all of these agreements were subject to the IMF programme. But if IMF doesn’t come now, then none of this money will come,” Miftah warned, adding it was time Pakistan took some difficult decisions.
He reiterated that “if IMF doesn’t come then it will be very difficult to save ourselves from a default”.
Finance Minister Ishaq Dar said that Pakistan’s performance criteria were up to the mark and “complete” for the IMF’s ninth review.
He said the IMF looked at the overall direction of a particular quarter, including structural reforms and fulfillment of conditionalities, which was “logical”.
Dar said Pakistan had eroded its credibility before the IMF due to the actions of the previous government and the Fund was asking for further information rather than just the current quarter. He expressed the thought that the IMF might combine the ninth and 10th reviews for the country due to the upcoming holidays.
“They want that we give them [data for the] whole fiscal year after working it out,” Dar said, adding that Pakistan was providing the information asked for.
The finance minister said the Fund was also asking questions about flood rehabilitation and where Pakistan would procure the funds for it, adding that it was “unfair” to do so.
“They’re basically asking about our financing plan] and we are also preparing it,” he added, saying that a “realistic picture” would be provided to the IMF.
To a question on whether the ninth and 10th reviews would be complete by January, Dar said the government was preparing for that and “we have to complete this task in the next few days.”
“I have discussed both things (financial help and oil facilities) with the Saudi finance minister, and there are positive vibes from there. They said they will support us,” Dar said.
He said the government was in touch with Saudi authorities but did not give a time frame for the aid.
Dar also said that Islamabad was looking at purchasing discounted oil from Russia and that he had discussed the matter with officials from the US State Department back in October.
Dar said US officials had told him that a G7 pricing committee was being set up for Russian oil products and that there would be a price cap.
“[They said] you shouldn’t buy [oil] for above that, and I agreed,” he said.
Pakistan’s default risk won’t subside until IMF comes aboard: Miftah
Dawn.comDecember 13, 2022
Former finance minister Miftah Ismail during an interview with Geo News. — screengrab
PML-N leader and former finance minister Miftah Ismail on Tuesday claimed that Pakistan’s default risk won’t subside until and unless the International Monetary Fund (IMF) came to the table.
“IMF is the lender of last resort […] and when it comes on board, other lenders like the World Bank and Asian Development Bank agree to provide us with loans.
“But if that connection with the IMF breaks or a programme is suspended then other loans stop as well and after that you can’t save Pakistan,” he said in an interview with journalist Shahzeb Khanzada on Geo News.
Pakistan entered a $6bn IMF programme in 2019 and its ninth review is currently pending with remote talks being held between IMF officials and the government for the release of $1.18bn.
Earlier, Dawn reported that Pakistan and IMF had had a round of engagement on November 18 but could not finalise a schedule for formal talks on the overdue ninth review.
The talks, originally due in the last week of October, were rescheduled to Nov 3 and then kept on facing delays following gaps in estimates by the two sides.
Earlier this month, incumbent Finance Minister Ishaq Dar said that he was not concerned whether the IMF team arrived or not for the ninth review, asserting that the IMF could “not dictate” the government.
Dar added that he had told the IMF that it was “behaving abnormally” in regard to dealing with Pakistan. “I have never taken dictation and never will from these institutions, I have to look after Pakistan’s interests.”
During the interview with Geo News today, Miftah — in contrast with Dar’s statement — said that “Pakistan has gone back into jeopardy and the situation won’t get better until IMF comes on the table”.
“When IMF gives you a loan, this means they are helping you out. But saying that the Fund is unreasonable […] we need to look at ourselves […] why did we go to IMF previously. Dealing with the IMF is not an easy task.”
He stressed that the country needed to do some things to bring the IMF mission to Pakistan, saying that funds from neighbouring countries could only last the country for so long.
In response to a question on the agreement reached with the IMF during his tenure as the finance minister, Miftah said that all the arrangements had been made before he was replaced with Dar.
“Qatar had promised $3bn, UAE had committed to $2bn and Saudi Arabia had promised $1bn. They had told this to IMF. Separately, our negotiations were underway with the World Bank and they too gave us a commitment along with ADB.
“But all of these agreements were subject to the IMF programme. But if IMF doesn’t come now, then none of this money will come,” Miftah warned, adding it was time Pakistan took some difficult decisions.
He reiterated that “if IMF doesn’t come then it will be very difficult to save ourselves from a default”.
Dar says Pakistan’s performance for IMF’s ninth review up to mark
Meanwhile, in an appearance on SAMAA TV programme ‘Nadeem Malik Live’,Finance Minister Ishaq Dar said that Pakistan’s performance criteria were up to the mark and “complete” for the IMF’s ninth review.
He said the IMF looked at the overall direction of a particular quarter, including structural reforms and fulfillment of conditionalities, which was “logical”.
Dar said Pakistan had eroded its credibility before the IMF due to the actions of the previous government and the Fund was asking for further information rather than just the current quarter. He expressed the thought that the IMF might combine the ninth and 10th reviews for the country due to the upcoming holidays.
“They want that we give them [data for the] whole fiscal year after working it out,” Dar said, adding that Pakistan was providing the information asked for.
The finance minister said the Fund was also asking questions about flood rehabilitation and where Pakistan would procure the funds for it, adding that it was “unfair” to do so.
“They’re basically asking about our financing plan] and we are also preparing it,” he added, saying that a “realistic picture” would be provided to the IMF.
To a question on whether the ninth and 10th reviews would be complete by January, Dar said the government was preparing for that and “we have to complete this task in the next few days.”
Pakistan seeking financial help from Saudi Arabia
The finance minister also said that Pakistan was seeking financial help from Saudi Arabia which will include doubling the current deferred oil payment facility given by Riyadh to $2.4 billion per year.“I have discussed both things (financial help and oil facilities) with the Saudi finance minister, and there are positive vibes from there. They said they will support us,” Dar said.
He said the government was in touch with Saudi authorities but did not give a time frame for the aid.
Dar also said that Islamabad was looking at purchasing discounted oil from Russia and that he had discussed the matter with officials from the US State Department back in October.
Dar said US officials had told him that a G7 pricing committee was being set up for Russian oil products and that there would be a price cap.
“[They said] you shouldn’t buy [oil] for above that, and I agreed,” he said.
INS_Vikrant
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Hamko maaloom hai jannat kee haqeeqat lekin. Dil ke khush rakhne ghalib ye khyaal achha hai.
Literally the shaayari came to mind while reading this
Literally the shaayari came to mind while reading this
ghazi52
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‘Funds’ for Pakistan missions abroad released
Spokesperson says SBP also gave nod to provision of foreign exchange for this purposeOur Correspondent
December 14, 2022
ISLAMABAD: Amid ongoing fiscal crunch, the finance ministry has released the funds needed to meet the needs of the country's embassies and missions abroad including the payment of salaries of their employees.
A finance ministry spokesperson said the funds for several Pakistani embassies and missions abroad up to the third quarter had been released to the foreign affairs ministry.
The spokesperson added that the State Bank of Pakistan (SBP) had also approved the provision of foreign exchange for this purpose.
It had come to the fore that the salaries of the employees of several Pakistani missions abroad had been stopped for four months because a shortage of dollars had compelled the finance ministry to refrain from releasing the funds.
Several missions from Europe had also sent letters to the foreign affairs ministry, in which they had complained about the shortage of funds they were facing and their salaries, which stood at $5 million in the last four months, remained unpaid.
Sources said the Pakistani Mission in Germany had written to foreign affairs ministry that the shortage of funds was obstructing its regular functioning.
They added the employees in the US, France, Germany, Oman, Vienna, and Belgium missions had also not received their salaries.
The salaries of the foreign affairs ministry's employees in Iran, Turkey and Afghanistan had also been delayed.
The foreign affairs ministry informed the finance ministry about the situation through a letter, but the authorities concerned were not releasing the funds because of low dollar reserves.
When contacted by The Express Tribune, the finance ministry spokesperson said the funds to meet the fiscal needs of Pakistani embassies and missions abroad — including the payment of salaries to their employees — had been released.
The spokesperson added that the central bank had also approved the provision of foreign exchange for this purpose.
The spokesperson for the Foreign Office said releasing the funds for the Pakistani missions abroad involved a series of steps and transactions, which sometimes were hit by delay.
Responding to the media reports, the spokesperson replied that the foreign affairs ministry was working with the finance ministry and other related departments to address the issue.
“It is the policy of the government to ensure the functioning of Pakistani missions abroad and all relevant departments are committed to this end,” the spokesperson added.
The FO spokesperson further said Pakistani diplomats and missions abroad were committed to representing the country and performing their duties.
So, they will get salaries till September soon and have to wait for remaining months to come later?
ghazi52
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His foreign visits.... Dollars are readily available...
APP
Agenda of the conference includes discussion on multiple challenges facing the developing countries in attaining SDGs
https://tribune.com.pk/story/239093...st-special-g-77-and-china-ministerial-meeting
https://tribune.com.pk/story/239093...st-special-g-77-and-china-ministerial-meeting
Till now 4 million dollars has been spent on his visits to all over world..
FM Bilawal arrives in New York to host special G-77 and China ministerial meeting
APP
Agenda of the conference includes discussion on multiple challenges facing the developing countries in attaining SDGs
https://tribune.com.pk/story/239093...st-special-g-77-and-china-ministerial-meeting
https://tribune.com.pk/story/239093...st-special-g-77-and-china-ministerial-meeting
Till now 4 million dollars has been spent on his visits to all over world..
SIPRA
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After "rakhne", there is "ko".
SDG = Sustainable Development GoalsHis foreign visits.... Dollars are readily available...
FM Bilawal arrives in New York to host special G-77 and China ministerial meeting
APP
Agenda of the conference includes discussion on multiple challenges facing the developing countries in attaining SDGs
https://tribune.com.pk/story/239093...st-special-g-77-and-china-ministerial-meeting
https://tribune.com.pk/story/239093...st-special-g-77-and-china-ministerial-meeting
Till now 4 million dollars has been spent on his visits to all over world..
A cancer patient in hospice attending a conference on New and Improved Techniques of Hair Transplantation for balding old men.
exactly how are you planning to pay for it ?
flameboard
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Cheap energy would continue economic growth. World powers find a bargaining chip so they can have their way. The Sharifs wait for permission
World powers have kept the phone off hook and have no intention of keeping it back for a long time.
flameboard
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Over the last couple years, Turkey and Qatar have demonstrated that it is possible to overcome difficult situations and successfully negotiate with other countries, even when those countries try to block their interests. While we should not rush to make enemies, it is important to remember that diplomacy is a two-way street. By being assertive and willing to defend our interests, we can create opportunities for mutually beneficial outcomes.
However, we should also be cautious and avoid costly conflicts. For example, instead of resorting to military action, we can use economic and diplomatic tools to pursue our objectives. By carefully weighing the costs and benefits of different options, we can find the best path forward and achieve our goals without undermining our long-term interests or damaging our relationships with other countries.
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