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IMF country report lays bare flawed PTI policies, reveals promises made by PMLN govt

FOOLS_NIGHTMARE

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The International Monetary Fund (IMF) has released the country report for Pakistan laying bare flawed policies adopted by the PTI government, which, the Fund said, eroded forex reserves of the country and contributed to the depreciation of the rupee. The report also reveals what the current government under the PML-N has promised to the world lending body.

The report does not name any political party, but refers to increased gross domestic growth (GDP) which the PTI has said was the result of its policies. Pakistan recorded a 6% GDP in the fiscal year 2021-22 (FY22) — ended less than three months after Imran Khan was ousted by the parliament in early April.

Experts have already said that the increase in the GDP was caused by unsustainable growth which led to economic overheating. The IMF report also comes up with the same conclusion.










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The Fund said that increased GDP in FY22 was “fueled by loose fiscal policy and a delayed monetary response to inflationary pressures.”

“These combined with the international food and fuel price shocks led to a marked deterioration of the external position with an unsustainable current account deficit, a significant decline in reserves, and a marked depreciation of the rupee.”

According to the IMF, the PTI government failed to respond to the international commodity price hike and its policies resulted in the depreciation of the rupee and erosion of forex reserves.

“Pakistan is at a challenging economic juncture. A difficult external environment combined with procyclical domestic policies fueled domestic demand to unsustainable levels. The resultant economic overheating led to large fiscal and external deficits in FY22, contributed to rising inflation, and eroded reserve buffers,” the IMF said.

The report said that the PTI government went back on its promises shortly after receiving around $1 billion from the IMF. “Program implementation deteriorated shortly after the completion of the sixth review. Amid a tense politcal landscape, programmed fiscal adjustment was undone and several key EFF commitments were resverd.”

Promises by current govt​

The report reveals that the current government has assured the Fund that it will reimpose general sales tax (GST) on petroleum products and will not offer any subsidy on fuel.

The government will not announce any tax amnesty without prior approval from Parliament.

It will also streamline the sales tax on services across the country. At the moment different provincial territories levy sales tax on services at different rates.

The Fund took note of the measures introduced by the PML-N government to put the IMF program back on track, including a budget based on basic surplus, an increase in the interest rate, and the removal of fuel subsidies.

The Fund has urged the government to maintain a market-based exchange rate, increase tax revenue and improve forex reserves.

The IMF also said that even after policy reforms the loan programs face unusual risks.
 

koolio

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But but your PDM promised to decrease diesel, petrol prices provide cheaper commodities to the public and make life better for the public, instead it's the other way around.

Exports have decreased by 24% percent and yet PDM is claiming this as a victory for securing IMF loans.

In short PDM has destroyed the economy and the floods which have caused massive damage to the infrastructure to an extent it will be very difficult for any new government to get out of this economic mess created by PDM.
 

CyberMarshal

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Where is the report? This is Shakeel Ahmed lifafa personal report, where is the IMF report?
This is what you get when you take the report out of context to tailor fit your agenda.

Here's an example of me doing it with a review of the above article:

The article written by the top economic expert journalist guy Shakeel Ahmed clearly outlines IMF's praise for the PTI's economic performance during its tenure.

The top economic expert journalist guy begins by summarizing "Pakistan recorded a 6% GDP in the fiscal year 2021-22 (FY22)" exclaiming how well Imran Khan's government was able to maintain a reasonable GDP growth during tumultuous times.

He then stresses how external factors such as "international food and fuel price shocks" and "tense politcal (sic) landscape" resulted in decline of the rupee and significantly increased inflation - taking a jibe at PDMs unpatriotic acts of personal vengeance and greed.

While stating the promises made by the new old government, the top economic expert journalist guy cautions how governments of the past have reversed IMF's suggested policies. PML-N's government has famously never completed any IMF programs in the past.
 

Nasr

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Believing anything coming from the IMF, is equivalent to listening to the devil that you would go to heaven. IMF is but a Zionist Western Mafia's to weapon used to extort and strip bare any nation that doesn't tow the Western narrative. As for PTI Govt is concerned, Pakistanis would rather be led by Imran Khan (an honest and trustworthy man) than those crooks, liars, thieves, murderers and traitors.

You know the destruction of a state is on the cards, from the heavens, if the majority citizens of that state support and want corrupt rulers who are traitors to Islam, lead them.
 

Jango

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I haven't read the report, but from the article it seems IMF basically said that commodity and fuel prices made things bad, and the political pressures on PTI meant they took some populist decisions.

Now what were those political pressures? Miftah (Yes, the same super hero who saved us) doing a press conference every day on a 2 Rs fuel hike (even though international prices were also increasing) and piling on the pressure.

Yeh sahi hai....pehle har price hike par tanqeed karo, phir when the party does not hike the prices to avoid that criticism, aur tanqeed karo. Hypocrites.
 

VCheng

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Yeh sahi hai....pehle har price hike par tanqeed karo, phir when the party does not hike the prices to avoid that criticism, aur tanqeed karo. Hypocrites.

And how was that any different when similar prices were going up during PTI's first dharna campaign, and exactly the same things were being said?
 

Jango

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And how was that any different when similar prices were going up during PTI's first dharna campaign, and exactly the same things were being said?

It isn't.

That's the unfortunate reality of politics in our country. Jab aik karta hai phir doosra bhi karta hai, and then the tables turn and the same continues.
 

VCheng

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It isn't.

That's the unfortunate reality of politics in our country. Jab aik karta hai phir doosra bhi karta hai, and then the tables turn and the same continues.

No wonder nationally we are just running frantically, but staying in the same place, no matter whose portrait hangs on the wall besides the Quaid's.
 

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