Pakistan refuses to accept IMF conditions

Discussion in 'Economy & Development' started by Devil Soul, Jun 28, 2013.

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  1. Devil Soul
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    Devil Soul ELITE MEMBER

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    Fund negotiations: Pakistan refuses to accept IMF conditions
    ISLAMABAD: Pakistan has refused to accept any of the conditions offered in the new program by the International Monetary Fund (IMF), Express News reported.
    Reasons for the refusal were attributed to the harsh nature of the conditions proposed by IMF.
    Earlier on Friday, the government had paid $260 million to the International Monetary Fund (IMF) as a part of loan repayment.
    On Thursday, Finance Minister Ishaq Dar rejected IMF’s demand to levy new taxes worth Rs275 billion as a pre-condition for new program.
    The draft containing details of the conditions that IMF asked Pakistan to impose will be given to the finance officials on Sunday.
    Fund negotiations: Pakistan refuses to accept IMF conditions – The Express Tribune
  2. Argus Panoptes
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    Argus Panoptes BANNED

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    What they say is meaningless. What they DO is what matters. Just watch as the price of everything is jacked up by indirect and direct impositions, particularly energy supplies, to increase revenue.
  3. hunter_hunted
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    hunter_hunted FULL MEMBER

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    What are those conditions???
  4. Argus Panoptes
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    Argus Panoptes BANNED

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    The main item is to reduce the budget deficit from 6.5 to 3.5 per cent. To do that will take huge cuts in subsidies and large revenue increases.
  5. airmarshal
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    airmarshal SENIOR MEMBER

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    The way Pakistan is being run, I dont see much hope.

    If the cost of inputs gets so high, with low and order going downhill too, we know where economy will be going too - downhill.

    Nations have pulled up from much worse. See Japan and Germany after WW2. But we dont have sincere and visionary leadership.
  6. Manindra
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    Manindra SENIOR MEMBER

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    The finance minister of GOP is cheating people of pakistan. Today this condition felt hard but it is good for economic health of pakistan for long run .
    Forgets IMF condition if they decide to revive economy then he should increase tax revenue decrease subsidy , C.A.D. , social & governmental spending , disinvestment of PSUs . That's what IMF wants. If they don't implement those steps then what would he do ? Begging aid from M.E.
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  7. Wright
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    Wright SENIOR MEMBER

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    Both Japan and Germany were leadership of the US. I would say it's the people themselves who were always industrious.
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  8. surya kiran
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    surya kiran FULL MEMBER

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    What is the Pakistani stand on raising monies through privatisation of non strategic investments?
  9. Bobby
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    Bobby FULL MEMBER

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    I dont see anything wrong in IMF's conditions....Pakistan has no other way to go but to accept IMF's conditions which are good for economy
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  10. Jungibaaz
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    Jungibaaz MODERATOR Staff Member

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    What's wrong with the IMF conditions? cutting deficit is needed.

    IMF means to force GoP to widen tax net (which should be done) and cut the deficit.
    Also get tax revenue wherever possible, ie tax evaders, tax from political elite including his highness.
    These terms our government doesn't want to accept, it conflicts with their personal interest.
  11. manojb
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    manojb FULL MEMBER

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    What's the name of the leader in post war Germany?
  12. Argus Panoptes
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    Argus Panoptes BANNED

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    The only problem with what the IMF asks of our government is not just of will to do what is needed as you describe it, but also of the consequences from the fallout which has the real potential to increase social stress and unrest.
  13. airmarshal
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    airmarshal SENIOR MEMBER

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    Konrad Adenauer. the first Chancellor of post war Germany.
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  14. SirHatesALot
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    Pakistan should accept whatever those conditions are, and work harder so that they don't get into similar kind of situation in future.
  15. Jungibaaz
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    Jungibaaz MODERATOR Staff Member

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    But IMF loans are necessary, yes cutting deficit means austerity and that has it's issues.
    However, austerity and it's meaning don't hold so true to Pakistan's economy. Unlike western economies where cutting the deficit means cutting public spending and increasing taxes for all. In Pakistan, many of the elite don't pay anyway and tax net is far too narrow, whether we address these issues in the future or now under IMF terms? I'd say better now then later and better when our leaders are given IMF loan incentives and also not to forget IMF loan is necessary, there's no two ways about it.

    I get what you are saying, but I feel that all this hoopla about not accepting IMF terms seems more like political posturing, making IMF the bad guy and irrational when given our situation.

    You are entitled to your own opinion buddy.