Pakistan will need another IMF package, says ADB

[UmarJustice]

Pakistan has reached a critical balance of payments situation and will need another package from the International Monetary Fund before the end of the year to avert a crisis, one of the biggest lenders to the country claimed on Wednesday.

Asian Development Bank’s country director Werner Liepach also told Reuters in an interview Pakistan would need up to $9 billion from the IMF to shield the economy.

Pakistan currently has enough hard currency to cover only about two months of imports.

Answering a question whether the country was in a balance of payments crisis, Mr Liepach said: “It depends how you define a crisis. Maybe we are already in a crisis.”

In 2008, the country averted a balance of payments problem by securing an $11bn IMF loan package, but the IMF suspended the programme in 2011 after economic and reform targets were missed.

Asked if Pakistan could avoid going back to the IMF, Mr Liepach said: “I don’t see that happening. It’s a question of time. They need to do this before the end of this calendar year. It needs to be $6 billion to $9 billion.”

So far, remittances from Pakistanis working overseas of about $1bn a month have helped keep Pakistan afloat, but by a thin margin.

“We are now at less than three months of imports. The current outlook is for a further decline in foreign exchange reserves,” said Mr Liepach.—Reuters

Pakistan will need another IMF package, says ADB | Pakistan | DAWN.COM

 

[Jade]

Bad for Pakistan

 

[UmarJustice]

Govt not seeking any package from IMF: Mandviwala
Federal Finance Minister Senator Saleem H Mandviwala on Thursday said that there is neither any programme to seek new loans from the International Monetary Fund (IMF) nor are there any proposals under consideration for this purpose.

Talking to journalista, the finance minister said that if the Parliament grants approval for Tax Amnesty Scheme, the government would not need to go to the IMF. He added; “if need arose the option of going to IMF is always there”.

He said if the Tax Amnesty Bill is passed, it would help overcome the revenue shortfall for the ongoing financial year. Mandviwala rejected the remarks of Asian Development Bank Country Director that “Pakistan could face difficulty in balance of payments and would need up to $9 billion from the IMF to shield the economy”.

He also denied having said that the government was going to approach the IMF for new package and instead had stated that the government has made timely payments of 10 installments to the Fund. He concluded that “this has improved the credibility of Pakistan in international financial institutions”.

Govt not seeking any package from IMF: Mandviwala | Pakistan Today | Latest news | Breaking news | Pakistan News | World news | Business | Sport and Multimedia

 

[T90TankGuy]

I would blame the lack of enforcement of income tax rules as the main causes for Pakistan being in this situation.

 

[veekysingh]

why china is not giving them money? 10-15 billion dollar is nothing for friendship higher then mountain and deeper then ocean

 

[Backbencher]

why china is not giving them money? 10-15 billion dollar is nothing for friendship higher then mountain and deeper then ocean

Exactly.......for an economy of $ 8 trillions ; 5 - 10 billion wont really count for anything .

 

[tarrar]

This is what happens when the corrupt & incompetent run the country. Now PML-N is ready & all set to win these set up elections & they are talking like as if they have magic wands to free Pakistan from all the problems.

In very simple words possible either Pak Army takes over or Gen. Musharraf wins the elections.

PPP, PML-N, PML-Q, ANP, JUI & MQM will only continue to harm Pakistan in worse possible way. They have only damaged Pakistan & they are continuing to do the same.

 

[AZADPAKISTAN2009]

IMF scam and CIA enjoy


And lover of Privatization here is the ex CIA man detailing the process

CIA steps to control countries

a) Invitation to corruption (directly at head of state level)
b) Assassination (Jackles)
c) Coup , forceful end of government (Jackles)
d) "Loans and Infrastructure projects" puts country in debt
e) IMF loans then introduce policies interference
f) Devaluation of Currency of other nation
g) Purchase of cheap resources (coal, marble , oil , gas, gold from country)


IMF's goal is to increase debt on country so its profits are used for paying back interest
while , national currency goes down

Then the US corporations come in and buy assets in name of "PRIVATIZATION" .. and modernization


Watch the Zietgiest "Series" 3 movies online to understand this

Talk about IMF scam from Min 7:00 in video

 

[bigzgvr4]

GANJA BRADRANS will Destroy Pakistan, how much money does one need to scam i guess they are looking for their 4th Generation of Kids to prosper only if Quid-e-azam Thought like them We would have been worse then Dalits/Shudars(indian need not comment just a Refference not Serious and i know for sure no shudar and Dalit is on PDF so keep it to your self)
wow five year old article really @55hole seriously Quit life

Thank you come again

 

[bigzgvr4]

I vote to Ban that kid for wasting our valuable time which i would have spent some where more counter productive i.e with the indians on the procurment of ARMS of india/pakistan or china technology or Comparrision of India and China the DRAGON VS i dont know what they call them selves but they Call Pakistan (pak) USA(Big Brother) Russians(Bear) ARABS(retarded uneducated zealots) and Iranian(ARYANS)

This is Kid is TRULY A "THANK YOU COME AGAIN"

 

[bigzgvr4]

@mods please cLOSE THIS THREAD ITS AN OLD ARTICLE AND A CHEAP ATTEMPT BY SOME ONE TO CAUSE TROLLING AMONG MEMBERS
to all the indians

thank you come again

 

[Star Wars]

Pakistan needs IMF loan to avert crisis: ADB

Balance of payments in critical state; up to US$9b needed to shield economy



[ISLAMABAD] Pakistan has reached a critical balance of payments situation and will need another package from the International Monetary Fund before the end of the year to avert a crisis, one of the biggest lenders to the country said yesterday. The Asian Development Bank's country director, Werner Liepach, also told Reuters Pakistan will need up to US$9 billion from the IMF to shield the economy.
Pakistan currently has enough hard currency to cover only about two months of imports. Asked if the country, a key US ally, was in a balance of payments crisis, Mr Liepach said: "It depends how you define a crisis. Maybe we are already in a crisis."
A fragile economy is just one of Pakistan's myriad problems as it heads into an election expected in May. The government is facing a stubborn Taliban insurgency and a worsening sectarian conflict in which hundreds have been killed in recent months.
In 2008, Pakistan averted a balance of payments problem by securing an US$11 billion IMF loan package, but the IMF suspended the programme in 2011 after economic and reform targets including widening the country's minuscule tax base were missed. Some analysts have since warned about the prospect of a new balance of payments crisis.


Pakistan needs IMF loan to avert crisis: ADB

 

[Liquidmetal]

Three things needed:

Remove all jahils/mullahs/Lej, Let, TTP, stop the killings fields of PK. How can you have an economy when a barbarian crowd is raised every time someone coughs!!!

Tax - how can you have revenue when only 1% pay any tax - 2 million people from a pop of 180 million!!!

Resurrect the institutions - education, health, police, railways, pia etc.

It is simple, do some work, generate ideas and implement them.

It is the lazy, self serving, so called democrats who could not run a small company never mind a country.

BTW the army cannot be allowed to return. PK has to continue down the road of democracy and hopefully the other people are selected rather than the tired and corrupt PPP/Sharifs.

 

[my2cents]

Three things needed:

Remove all jahils/mullahs/Lej, Let, TTP, stop the killings fields of PK. How can you have an economy when a barbarian crowd is raised every time someone coughs!!!

Tax - how can you have revenue when only 1% pay any tax - 2 million people from a pop of 180 million!!!

Resurrect the institutions - education, health, police, railways, pia etc.

It is simple, do some work, generate ideas and implement them.

It is the lazy, self serving, so called democrats who could not run a small company never mind a country.

BTW the army cannot be allowed to return. PK has to continue down the road of democracy and hopefully the other people are selected rather than the tired and corrupt PPP/Sharifs.

Income tax is only one stream of revenue in our neighborhood. India it is 3.25%, China it is 1.3% Pakistan 1% compared to America which is 53%

 

[Liquidmetal]

Income tax is only one stream of revenue in our neighborhood. India it is 3.25%, China it is 1.3% Pakistan 1% compared to America which is 53%

It is not possible that India is only collecting 3.3% it must be much higher. Look at India's reserves and spend and the same for China. It is a necessity for all countries that want to become civilised, to have a fair and equitable tax system and collection.

Otherwise do not expect power, roads, gas, schools, defence, transport etc.