Pakistan plans seeking $12 billion IMF bailout: UK Financial Times

[El Sidd]

Which is the easy way out.

Imf

 

[Indus Pakistan]

Imf

I mean't the 'hard' way out?

 

[ziaulislam]

@ziaulislam

Hahaha what an idiot showed his mentality and bias in one go. One can see how you are literally begging to make case for IMF rofl

I hope you donate a couple of billion dollarss and we should be fine ...problem is punjab voted for pml n(won 65 seats vs 60 seats pti) and sindh so both mr dar and nawaz and mr 10. Filled up their banks

Which is the easy way out.

None...
Imf is going to squeez Pakistan hard especially on CPEC...imf would want Pakistan to cut spending on infrastructure ...

I think the best way be to get more from china couple it with bonds and aggressive negotiations with AB, WB along with AIIB ...but these banks will not do budget support so PTI will have to ask money for development projects preferable good return projects like dams

Invest in solving unnecessary imports like tea, steel, refined oil, cooking oil, pulses ..all can be sourced from inhouse..switch oil with LNG

Ban all car imports

 

[maximuswarrior]

Nothing is certain yet, but if the IMF route is taken I would take this bitter pill and work towards preventing another IMF bailout catastrophe in the future. However, there should be no compromise on CPEC and other critical projects. The Americans have obviously already hinted their nefarious intentions.

The new government should still try its level best to avoid IMF and opt for all other options. Expats need to be approached en masse, imports need to be limited as much as possible etc.

Thank you Nawaz Sharif aka Modi lover for putting Pakistan in this terrible position.

 

[waz]

Frankly Pakistan needs to sit down and see what its labour and short term investment trends are to see what it can actually export competitively and sustainably.

Import substitution that you are suggesting is very slippery slope given the opportunity costs of the labour and investment that would be engaged in an insulated way from the free market (that breed inefficiencies over time).

Pakistan needs to seek to export more (with least amount of investment and maximum amount of productivity) rather than import less....because even high value imports can often be productive (i.e early in the economic chain) and might not be price inelastic as required to raise revenues and/or create the buffers needed for local production investment.



There may be an effect like you say short term (impulse of dollar supply and PKR demand) dependent on the deficit ramp (i.e what scale I.K prioritises), but you have to remember the 12 billion is not injected into the money supply immediately all at once, rather it is a base collateral to help finance Pakistan's precarious balance of payments situation.

The long term situation will depend on whether that improves (i.e will the sparks and kindling help to create a sustainable campfire), because ceterus paribus, a loan has servicing requirements and thus PKR depreciation pressure.

@Chak Bamu @Jungibaaz @Major Sam @farhan_9909

Spot on bro.

 

[maximuswarrior]

PTI seems dont have an economic policy in long term.....atleast that what i got from listening to Shaukat Yousafzai

It is PML-N that has put Pakistan today in this precarious position.

PTI is merely trying to rectify PML-N mess. We knew it was never going to be an easy job from day one.

It is a bitter pill. We will have to weather this storm, but will come stronger out of it.

The new government should squeeze Nawaz Sharif, Zardari and all other corrupt crocodiles to the core. Zero mercy. Freeze their assets and ask foreign governments/banks for full cooperation in returning the stolen money. The new government needs to make this a top priority.

 

[El Sidd]

I mean't the 'hard' way out?

Earn our keep

 

[ziaulislam]

PTI seems dont have an economic policy in long term.....atleast that what i got from listening to Shaukat Yousafzai

Wrong person...asad umar is the economics guy and he has all his ducks in the row

 

[Zee-shaun]

PTI seems dont have an economic policy in long term.....atleast that what i got from listening to Shaukat Yousafzai

Shaukat Yousufzai made a complete fool out of himself. Leave the economic debates to those who understand the basic concept and dynamics of pak economics.
I rather listen to Asad Umar, he's the guy. Not this shaukat clown.

 

[Indus Pakistan]

Earn our keep

That would take years to fix. What about this month? The next. The one after? And so on until everything is fixed. You do know even as it is most of the money is earned by ex-pats and then remitted to Pakistan? Without that Pakistan would implode like a balloon making contact with a pin.

 

[El Sidd]

That would take years to fix. What about this month? The next. The one after? And so on until everything is fixed. You do know even as it is most of the money is earned by ex-pats and then remitted to Pakistan? Without that Pakistan would implode like a balloon making contact with a pin.

People have been saying this for 70 years.

We need to get serious

 

[Indus Pakistan]

We need to get serious

So far your just being rhetorical but short on substance. We all know it needs fixing. We all know everything should be earned. But how do we navigate out of the mess that NS/Dar and company have left Pakistan in? The financial situation is grim to say the least.

grim to say the least.

I am here dozing off on my sofa but there is this yearning for almonds. I desperately need them. So I guess I am off to Tesco ...

 

[El Sidd]

So far your just being rhetorical but short on substance. We all know it needs fixing. We all know everything should be earned. But how do we navigate out of the mess that NS/Dar and company have left Pakistan in? The financial situation is grim to say the least.

I honestly dont know.

But for the good of this country. I hope its transparent enough.

We are a Consumer society. We will always be bailed out

 

[ziaulislam]

People have been saying this for 70 years.

We need to get serious

problem it takes couple of years to destroy the econmy..just 1 wrong step and you can destroy the econmy
econmy was fine in 1980s, was destroyed by PML N..but people still voted for them, we literally defualted in 1998 and debt doubled yet people voted for PML N, mushi came and fixed it but was thrown down by his poor polcies in 2007-08(to subsidize oil in wake of 150$ oil crisis) and than by PPPP, than by PML N

no matter what you tell people, they dont care, it was slogan of corruption than PTI delivered with some luck(internal division in PML N) yet remeber even now PML N won more seats in punjab..the reason for PTI sucess is thus failure of any party in KPK and karachi and power poltics of PML N along with panama leaks

Shaukat Yousufzai made a complete fool out of himself. Leave the economic debates to those who understand the basic concept and dynamics of pak economics.
I rather listen to Asad Umar, he's the guy. Not this shaukat clown.

PTI needs to educate there presenters about not making them selves fools..they have to be very calculated and potlical correct

 

[Trango Towers]

Dors 0akistan really need an IMF bailout?

1..all the landcruisers given to idiotic prople in government should bw taken back and all employees of the government should go to work in their own vehicles including the PM just like everyone else.
2. Cut all food expenses in govenment offices
3. Put tax on every property transcation similar to the UK
4. Look at all the pakistani bank accounts and all the people living above their means. How did they get the money and start a proper tax.
5. Tax small farmers but just 2.5 percent unless they are major landlords
6. Encourage foreign investment. Many many paksitanis expats see opportunities but dont invest due to law and order and poor governance. Create an environment of positive business
7. Go after crooks hard. Spare no one
8. Give nawaz sharif and zardari 6 monthd ti bring all the stolen money or kill them and all their family including children so the weeds never raise their ugly heads again