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Govt plans mini-budget to meet IMF conditions

AZ1

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muhammadhafeezmalik

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1660221236225.png
 

Jango

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Calling this guy 'mahir-e-mashiyat' is honestly an insult to an actual economist.

Anyways back to the topic, the government is yet again doing what it has always done...bow down to pressure lobbies and voter base, and put burden on the salaried class. First it backed down in front of the traders by removing POS, now it has completely backed down by removing even the fixed tax...and now it is removing the tax on FO diplomats.

Lagay raho munna bhai.
 

Pakistansdefender

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I have lost count how many mini budgets came.
Ab to mehangai bhi halal hai.
Yaqeen kero main ne 4 mahina se french fries nhn khaya.
Gher wala kehta hai oil zayda ho ga.
 

muhammadhafeezmalik

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Calling this guy 'mahir-e-mashiyat' is honestly an insult to an actual economist.

Anyways back to the topic, the government is yet again doing what it has always done...bow down to pressure lobbies and voter base, and put burden on the salaried class. First it backed down in front of the traders by removing POS, now it has completely backed down by removing even the fixed tax...and now it is removing the tax on FO diplomats.

Lagay raho munna bhai.

Every Pakistani government especially Pakistani Finance Minister has to walk on very thin rope, voters' pressure, election donors' pressure, FR pressure and to fill the gap created by budget deficit. This is election year, Dunya News is saying that it is about 18 billion but to my understanding it is about more than 52 billion.
 

RoadRunner401

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The day Shehbaz Sharif bought the government, Pakistan economy was growing at 6% exports touching 30 billion plus not to mention, Moody’s Upgrades Pakistan's Economic Outlook The agency also changed the outlook to ‘stable’ from ‘negative’. ) Not sure where this so called economist got his degree, but he should ask for full refund right away...
 

ghazi52

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.,.,
In yet another development on the International Monetary Fund (IMF) front, Pakistan has received a Letter of Intent (LoI) from the Washington-based lender, moving closer to disbursement of the next tranche for the combined seventh and eighth review, reported Aaj News on Friday.

Pakistan would sign off on the LoI and send it back to the IMF, said the report, adding that the IMF Executive Board approval is now the final step for revival of the stalled Extended Fund Facility (EFF).

Earlier this month, the IMF announced that Pakistan has completed the last prior action for the combined seventh and eighth review following the increase in petroleum development levy (PDL), adding that the board meeting is tentatively planned for late August once adequate financing assurances are confirmed.

IMF wants assurance on Saudi funding to Pakistan before it disburses loan: report

Back in July, the IMF team reached a staff-level agreement (SLA) with Pakistan authorities for the conclusion of the combined seventh and eighth review.

After approval of the Executive Board, “about $1,177 million (SDR 894 million) will become available, bringing total disbursements under the programme to about $4.2 billion,” the IMF had said in its statement then.

However, it was reported last month that the IMF was also looking to assess commitment of other sources to financing Pakistan before the multilateral lender disburses fresh funds to the country. The Washington-based lender wants to ensure Pakistan does not have a financing gap after the IMF loan.

The IMF funding, along with other financing, is crucial for Pakistan, which is desperately seeking dollar inflows in the face of falling foreign exchange reserves.

Forex reserves held by the State Bank of Pakistan (SBP) fell another $555 million, clocking in at an alarming level of $7.83 billion as of August 5, 2022, as policymakers in the country continued to scramble over securing dollar inflows and provide breathing room to the economy.

The IMF programme revival is also vital for the local currency, which saw its worst month in over 50 years in July.

However, as progress is made over the IMF programme, the rupee has appreciated, and was hovering around the 215 mark on Friday, an over 11% gain since it hit its all-time low last month.
 

Jango

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Every Pakistani government especially Pakistani Finance Minister has to walk on very thin rope, voters' pressure, election donors' pressure, FR pressure and to fill the gap created by budget deficit. This is election year, Dunya News is saying that it is about 18 billion but to my understanding it is about more than 52 billion.

And until we keep pandering to the voter base for short term popularity, things will keep on going downhill.
 

muhammadhafeezmalik

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