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IMF dictates fiscal policies to Pakistan

VCheng

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I know what it means but now that the shoe is on the other foot I have no desire to give them any legroom

Luckily, economics knows not who or what is in power. The numbers remain the numbers, and they respond only according to well-known principles, always, no matter how handsome or ugly the person making the decisions is. What the IMF says is what is needed to be done to put the financial house in order. Simple.
 

Zibago

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Not really
See in presdential system
Oresident has executive
But he can still be removed by parliment with 2/3 majority
Or he cant pass finance bill/budget without parliment

The problem of pakistan is society accepts corruption as norm..it isnt about system its about the society acceoting corruption

If any system actually protects small minority parties and may better suit pakistan

In presdential system zardari will simply buy all the parliment (obvisouly with army blessing)
President in Pakistan should have as much power as President in US or France
That is necessary for the country to continue

Luckily, economics knows not who or what is in power. The numbers remain the numbers, and they respond only according to well-known principles, always, no matter how handsome or ugly the person making the decisions is. What the IMF says is what is needed to be done to put the financial house in order. Simple.
If they don't take tough measures we become Sri Lanka
If they so take them then the alliance they formed start to move apart as public pressure mounts and they become less popular

Niazi sold this country and destroyed our economy completely. It’s unrecoverable damage, we are back in 1990’s.
So why are you begging in KSA on a 777 and asking IMF for an expensive bailout?
 
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VCheng

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If they don't take tough measures we become Sri Lanka
If they so take them then the alliance they formed start to move apart as public pressure mounts and they become less popular

Either way, economic matters must be dealt with properly, at some point or another. The later the effective decisions, the harder they will become, plain and simple. The reckoning can be delayed but never avoided.
 

Zibago

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Either way, economic matters must be dealt with properly, at some point or another. The later the effective decisions, the harder they will become, plain and simple. The reckoning can be delayed but never avoided.
They wont be
This government too shall kick the can down the road

Pakistan's economic issues are no where near that of Sri Lanka. Pakistan also has better geo political friends for support than Sri Lanka. There is really no equivalence :cheers:
But our political situation is much more toxic with governments putting exports as an after thought instead of main priority
I mean from 2013 to 2018 we had no increase in exports to speak of
 

ziaulislam

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1973 consitution was made by whooing several minority groups throught the country..doubt this can be done again
Esp in presidential system

President in Pakistan should have as much power as President in US or France
That is necessary for the country to continue


If they don't take tough measures we become Sri Lanka
If they so take them then the alliance they formed start to move apart as public pressure mounts and they become less popular


So why are you begging in KSA on a 777 and asking IMF for an expensive bailout?
You need to study presidential system of france and USA

Both systems the parliment passes spending bill not the president

Spending power is the most important power
You still can make basic polcies but without spending power you are pretty much handicapped

What i mean to say even had IK being a oresident he would have been impeached by lotas

Problem isnt system..its the society
In any other society kncluding USA/FRANCE FIA/FBR would have raided these lotas home for bribery and they woukd have been serving life sentence

In pakistan YOU HAVE THEM ON CAMERA YET ZERO ACTION BY ELECTION/PMLN comission, judges, FIA NAB etx as everyone is afriad of khali mukhlooq
 

Abid123

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The day majority of the people in Pakistan start paying tax we could collect minimum 50 billion USD in tax revenue. If we have a good tax system then considerably more than that. That money could go towards education, health care, infrastructure etc.
 

PradoTLC

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IMF dictates fiscal policies to Pakistan​


It demanded steep fiscal adjustments, discontinuation of the amnesty scheme, increase in fuel prices, increase in power tariffs, and restoration of taxes before the country could expect to unlock the $3 billion.
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IMF dictates fiscal policies


As the incumbent government’s Finance Minister headed for Washington for the latest meeting with the International Monetary Fund to secure future loans, rumors of possibly stressful news, with some suggesting that the IMF might refuse to continue with the program, started to catch the air. Abuzz with speculations, the political atmosphere started to hum down as official reports started coming in. As per the initial reports, the finance minister Miftah Ismail, while negotiating the loan program, agreed to the lender’s recommendations to slash subsidies granted on major commodities, especially petroleum.
IMF also put forth a series of preconditions that Pakistan has to meet before IMF releases the pending installment of loans. It demanded steep fiscal adjustments, discontinuation of the amnesty scheme, increase in fuel prices, increase in power tariffs, and restoration of taxes before the country could expect to unlock the $3 billion. After the meeting, Ismail said that he had “good discussions” with the IMF. In the meeting, it was emphasized that Pakistan would remove the subsidy on fuel. Following the meeting, Miftah Ismail, in an interview with foreign media, said that “We can’t afford to do the subsidies we’re doing. So we’re going to have to curtail this”. In the interview, he emphasized that the former Prime Minister, before leaving the office, had set up a financial “trap” for his successor. He added that Imran Khan had derailed the economy through his mismanagement and his ill-thought-out policies, such as the amnesty scheme for businesses.

Read More: Rupee plunges after reports by World Bank, IMF
Finance Minister Ismail, before embarking on the trip, said that “I will go to the IMF, and we will get it restored.” Referring to the recent subsidies on petroleum products announced by the former Prime Minister Imran Khan, he said, “The government will do the required belt-tightening. We will get budget discipline back on track.” However, he added that the Prime Minister had advised the Finance Minister to pass on the minimum possible burden to the people.
To clarify, last month, Prime Minister Imran Khan unveiled a major relief package that included but was not limited to a Rs 10 per liter reduction in petrol prices, bringing the price of petrol down to approximately Rs 150 per liter. He added that the cost would not be revisited before announcing the next budget. Subsequently, the new government came to power and maintained the petrol prices, only to revisit the decision a few days later. Reviewing the decision, Ismail wrote on Twitter that “the decision announced last night” to continue with the prevalent subsidies “was a tough one and will have to be revisited.” He added that the “government was losing Rs. 21 per liter on petrol and Rs at the current pricing. 52 per liter on diesel.” He estimated that at this rate, the government would lose Rs. 250 crore per day or Rs.3600 crore in two weeks, far more than the expense of “running the entire civilian federal government plus the entire BISP/Ehsaas programme.”
Read More: Another achievement by PTI: Last condition of IMF fulfilled
It is pertinent to mention that Pakistan went to the IMF in 2019, and under the agreement, Pakistan is to receive about US$6 billion for 39 months, and so far, it has received almost half it. The IMF program is scheduled to end in September.



Will the noonies hiding in PDF now explain how will this fully imported gov combat inflation?

After all was this not the main reason for IK removal ?


What say you now ?
 

ziaulislam

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Niazi sold this country and destroyed our economy completely. It’s unrecoverable damage, we are back in 1990’s.
Exactly..IK destroyed the economy like he did in 1990s

Will the noonies hiding in PDF now explain how will this fully imported gov combat inflation?

After all was this not the main reason for IK removal ?


What say you now ?
They will now say IK did a good job
And indeed he did
Look at inflation in USA and pakistan
Compare the numbers in 2012-15 and 2018-21
You will see the difference
 

crankthatskunk

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All the points presented forward are valid by the IMF. God bless immi for the petrol landmine. Detracked the IMF program and subsequently blew the rupee as well.

You were not among those who were saying PTI has increased the prices and inflation is hitting the poor man, who are suffering from rising prices!!
Now you are complaining why IK / PTI kept the prices low!!
Lets see how your economic wizards are going to give poor the relief and reduce prices.
As for blowing the Dollar, ask Ishaq Dollar, what he has done.
 

PradoTLC

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You were not among those who were saying PTI has increased the prices and inflation is hitting the poor man, who are suffering from rising prices!!
Now you are complaining why IK / PTI kept the prices low!!
Lets see how your economic wizards are going to give poor the relief and reduce prices.
As for blowing the Dollar, ask Ishaq Dollar, what he has done.

Dar is good at running away
 

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