Pakistan strike deal with IMF

[BHarwana]

PTI is taking $2.5 billion a year why? This is peanuts.

This is nothing. So why did PTI went for IMF loan of such small proportion?

I am confused a bit.

 

[Proudpakistaniguy]

All the time I thought you were brainless that is an improvement indeed keep it up.

Your kaptaan also thought Asad umar ( shadow finance minister ) is brain of PTI but proved to be brainless just in 8 months so basically boht youthiya and their kaptaan are very poor in judgement . You are just good slave who will blindly defend whatever IK do . so yes I cannot win argument with slaves because they have ready made excuse for everything to justify their loyalty so now they will defend IMF, inflation, increase in taxes, increase in petrol/electric prices

 

[ziaulislam]

PTI is taking $2.5 billion a year why? This is peanuts.

This is nothing. So why did PTI went for IMF loan of such small proportion?

I am confused a bit.

Wrong PTI is only getting 1.8b in 3 years

Because govt has 30b$ of paris club loans that are now due. These needs to be rolled over

Than there is WB and AB

Last time God sent mushi who used USA to renew the loans saving us from default in 2002

 

[Crusher]

PTI is taking a year why? This is peanuts.

This is nothing. So why did PTI went for IMF loan of such small proportion?

I am confused a bit.

The idea/reason behind getting into IMF system even with $1.8 billion/year loan is to use IMF cover to qualify for additional loans from other international lending bodies like world bank, asian development bank etc. and to have some kind of credibility attested by IMF to float dollar/euro bonds to generate more dollars/euros for the reserves. IMF acts like a stamp of attestation for more loans from other sources because IMF will publish the periodic review/progress reports of pakistan's adherence to their conditions during IMF 3 years program.

 

[Lincoln]

Still flabbergasted on why China doesn't just wave its magic wand and give 50 billion to Pakistan. It will remove all the troubles in paksitan and get it out of IMF trap which undoubtedly has an impact on its flagship cpec project.

China is a country, not a bank.

Sorry for going off topic. But it's not that simple. China has more to lose with the IMF deal than Pakistan. CPEC is the vanilla project in and road initiative which is the brain child of ping xi. If this fails he has everything to lose as it can mean as much as being ousted from the top position of communist party. This is really something that really doesn't make sense. 50 billion is nothing to China compared to what is at stake. Things don't add up.

CPEC funds are separated, man. How will it fall when CPEC funds are only being used on CPEC and provided by China as grants and soft loans.

 

[Thorough Pro]

Only is self proclaimed economists on this forum can understand this

 

[Zee-shaun]

PTI is taking $2.5 billion a year why? This is peanuts.

This is nothing. So why did PTI went for IMF loan of such small proportion?

I am confused a bit.

Sir, IIRC the amount we needed initially was around $14 billion. And then Khan visited KSA, UAE, China and Malaysia and struck good deals. At that time Asad Umar announced that we needed approx $7-8 from IMF.

 

[lightoftruth]

Under the proposed agreement, the government would not control the rate of the dollar, and subsidies in the energy sector, as well as other sectors, would be withdrawn.

Means further devaluation & more inflation.

Besides no control over interests rates ?hmm.

Very tough times ahead for people of Pakistan.

So bad and so sad.

 

[Tameem]

Still flabbergasted on why China doesn't just wave its magic wand and give 50 billion to Pakistan. It will remove all the troubles in paksitan and get it out of IMF trap which undoubtedly has an impact on its flagship cpec project.

You are quite right but why they Help Imran Khan Govt who makes every obstacle in the initiation of belt and road project in Pakistan in Nawaz Sharif tenure back in 2014-5. His 126 Days Dharna outside parliament was the main reason of postponement of Chinese premier visit. IK, while in opposition always criticize CPEC agreements and vows to open every contract to see corruption. He is not Imran Khan, He is and Idiot Khan for a reason.

Like Beurucracy, internal investor, large manufacturing organization our friend China too holding all its new investment until this corruption Keera fully neutralized in this Idiot Khan.

 

[Yaseen1]

this will lead to massive unemployment and inflation as predicted by many economists

 

[Clutch]

and now the prices will skyrocket
the poor people should get ready to die
while the middle class should get ready to be classified as poor

Well if the middle class doesn't pay any taxes and is a willing participant in corruption.... You have to pay the piper one way or another.

That's how it works.

 

[Proudpakistaniguy]

Informative debate about economy

 

[Michael Corleone]

??
You know anything about real effective rate sir?
If inflation is 10% the interest rate of 12% is merely 2% which is surprisingly low

This is state bank interests by the way not IMF laon rate

Pakistan needs to role over 40b$ of paris club laons on favourable terms which will not happen unless they know we can pay

hmm... but why don't china bail out pakistan in this... a good 50 billion dollars solves all the problem and will be beneficial for china too

 

[shah_123]

Wrong PTI is only getting 1.8b in 3 years

Because govt has 30b$ of paris club loans that are now due. These needs to be rolled over

Than there is WB and AB

Last time God sent mushi who used USA to renew the loans saving us from default in 2002

Do you really think that GOD will send someone to renew loans involving Riba' . ---

 

[Jf Thunder]

Well if the middle class doesn't pay any taxes and is a willing participant in corruption.... You have to pay the piper one way or another.

That's how it works.

yeah, instead of ripping taxes from those middle class that already pay their taxes
why not rip them from those upper class that don't pay them

This is what happens when you do steriods/drugs

Essence if problem of Pakistan is that they believe they can print dollar/gold which they cant..

Why run fiscal deficit of 8%(meaning taking 3000b loan every year) and who is going to give you that loan? Noone..so now what? Print money.. yeah but now rupee loses value so now you need dollars now what? Arabs give u moeny for year but than what?
People of Pakistan need to be responsible for their actions for choosing corrupt people who went to IMF 10 times..

so, this government is doing what the previous ones were doing
how is this different for the common man?