IMF combing ‘every book, every subsidy’ during negotiations: PM Shehbaz

[ghazi52]

.,..,

IMF combing ‘every book, every subsidy’ during negotiations: PM Shehbaz​

Dawn.com | APP
February 5, 2023

Prime Minister Shehbaz

Prime Minister Shehbaz Sharif on Sunday reiterated that the country was facing substantial financial challenges, with the International Monetary Fund (IMF) “combing every book” during the ongoing negotiations over the ninth review of the $7 billion loan programme.

The IMF delegation, headed by Nathan Porter, and the government began the make-or-break discussions last week. Pakistan needs to complete the review to stave off default.

Subsequently, the government had increased liquefied petroleum gas (LPG) price by 30 per cent and finalised a minimum of Rs6 per unit average increase in electricity rates between now and August.

Over the weekend, the premier said the IMF delegation was giving a “very tough time” to Finance Minister Ishaq Dar and his team.

Addressing the Azad Jammu and Kashmir (AJK) Assembly on the occasion of Kashmir Solidarity Day in Muzaffarabad today, PM Shehbaz again said that the Fund was scrutinising the records of various ministries and reviewing “everything” and “every subsidy”.

“The IMF is looking critically at every book, be it petroleum, finance, commerce or the power sector,” the premier said. “They are looking at each and everything. Every subsidy.”

The prime minister shed light on how the country has been on a “begging spree”, calling for it to be stopped once and for all.

“We have to stay alive but only how alive nations live and not by begging,” he said. “This has been going on for 75 years. We have to put a stop to this.”

The premier vowed to break “this habit of begging” that country was embroiled in.

“This will stop when the entire nation [stands] united to fight inflation and vows to produce their own resources,” he said. “It was very easy to say so but doing it was harder. We deliver speeches but after an hour I forget what I had said.”

IMF combing ‘every book, every subsidy’ during negotiations: PM Shehbaz

Reiterates that the Fund is "looking critically" at every aspect, proving very hard to deal with.

www.dawn.com

 

[epebble]

The American College of Physicians recommends a colonoscopy once every 10 years for everyone above 50. This is long overdue.

 

[SeaMermaid]

The American College of Physicians recommends a colonoscopy once every 10 years for everyone above 50. This is long overdue.

They brought this down to 45 now i believe

 

[Kuru]

Addressing the Azad Jammu and Kashmir (AJK) Assembly on the occasion of Kashmir Solidarity Day in Muzaffarabad today

Pakistan talks about difficulties on getting a loan on Kashmir Solidarity Day!

 

[Menace2Society]

What did you expect with this track record?

PPP and PMLN completely wrecked the country. How do they still have control

 

[epebble]

What did you expect with this track record?

PPP and PMLN completely wrecked the country. How do they still have control

Pakistan has not been a going concern for over Half a Century now.

 

[ziaulislam]

What did you expect with this track record?

PPP and PMLN completely wrecked the country. How do they still have control

Khata hey tu lagata be hey

 

[undercover JIX]

No accidental fire?

 

[epebble]

Until pakistan comes clean on full terms of so called cpec nobody can trust them.

I don't understand this. How can conversations the PM has with his cabinet members be publicly available but not treaty documents? Will nobody leak them? If they are kept so secret that only a handful of people know the contents, what happens if there is an accidental fire, and the agreement is lost? The next government can say, sorry we don't have an agreement, there are no debts outstanding.

 

[SeaMermaid]

Economically-strong Pakistan can ensure Kashmir freedom: PM | The Express Tribune

Shehbaz says IMF scrutinising every book, subsidy; hails national unity on Kashmir cause

tribune.com.pk

Is PM really talking to IMF about Kashmir freedom? lol god. no wonder IMF hasn't approved the loan. They know Pak won't use it for what it was given.

 

[ghazi52]

,.,.

Pakistan Premier Says IMF Giving Nation ‘Tough Time’ on Loan​

• Currency and bonds fell after Prime Minister Sharif’s remarks
• Pakistan reserves dwindled further to $3.09 billion on Jan. 27

Kamran Haider and Faseeh Mangi
February 3, 2023

The International Monetary Fund is giving Pakistan a difficult time in ongoing bailout negotiations, Prime Minister Shehbaz Sharif said, heightening the stakes for a country already in the throes of its worst economic crisis in decades.

“As I’m speaking, the IMF delegation is in Islamabad and definitely giving a tough time to the finance minister and his team,” Sharif said in a speech Friday in the city of Peshawar. The IMF is scheduled to hold talks in Pakistan through Feb. 9 to revive a stalled $6.5 billion loan program.

Shehbaz Sharif
Photographer: Ahmad Gharabli/AFP

Sharif said the IMF’s requests for unlocking funds from the program are “beyond imagination,” casting doubt on how soon the nation can expect money to ease 48-year-high inflation and supply shortages.

The IMF funds are also crucial for securing more aid from Middle Eastern countries. Pakistan is struggling to rebuild its foreign exchange reserves to pay for imports and interest on its debt. After Sharif’s speech, the country’s currency and dollar bonds fell.

“The prime minister is under a lot of pressure as he has to face people in upcoming elections due at the end of this year,” said Adnan Khan, head of international sales at Intermarket Securities in Karachi. “He is left with no choice but to accept the harsh IMF conditions. Anyone in his position would do the same.”

Pakistan has a tumultuous track record with the IMF. Most of its previous bailouts — 13 since the late 1980s — weren’t completed. But earlier this year, Sharif’s government loosened its grip on the Pakistani rupee and raised fuel prices, signaling its determination to negotiate.

Pakistan’s foreign currency reserves have dwindled to $3.09 billion as of Jan. 27 — equivalent to less than a month of imports. Local banks are refusing to issue letters of credit, leading to a standstill that could force businesses to shut down.

The rupee fell 1.7% to a record low 275.0250 on Friday, according to data compiled by Bloomberg. Bonds due in April 2024 were indicated 0.3 cents lower at 56.94 cents on the dollar.

Last year’s devastating floods, which caused billions in damage, have added to the woes of an economy already reeling from political turmoil and fallout from the war in Ukraine. Borrowing costs are the highest in 24 years..

The government secured a $1.1 billion loan last year, part of a $6.5 billion package that was stalled due to Islamabad’s failure to meet loan conditions, including boosting energy prices. On Friday, Sharif said Pakistan has no choice but to make compromises.
“We have to meet them in any condition,” he said.

— With assistance by Karl Lester M Yap

Pakistan Premier Says IMF Giving Nation ‘Tough Time’ on Loan

The International Monetary Fund is giving Pakistan a difficult time in ongoing bailout negotiations, Prime Minister Shehbaz Sharif said, heightening the stakes for a country already in the throes of its worst economic crisis in decades.

www.bloomberg.com