• Friday, July 19, 2019

IMF seeks disclosure economic and defence cooperation between China and Pakistan

Discussion in 'Pakistan Economy' started by maximuswarrior, Apr 15, 2019.

  1. maximuswarrior

    maximuswarrior ELITE MEMBER

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    WASHINGTON: The visit of an IMF mission to Islamabad for finalising a bailout package for Pakistan may be delayed as both sides are still engaged in an intense discussion on the proposed programme, official sources told Dawn.

    Finance Minister Asad Umar said earlier this month that the mission would visit Islamabad soon after the spring meetings of the World Bank Group, which includes the International Monetary Fund (IMF), and an agreement should be signed by the end of this month. The meetings, held in Washington this week, ended on Sunday.

    Read: Asad to hold crucial talks on IMF package in US this week

    The finance minister, who led the Pakistani delegation at the meetings, went to New York on Friday but his team, which includes senior officials of his ministry and other government agencies, stayed in Washington for further talks.

    At a Thursday night news briefing in Washington, Mr Umar said the two sides had “more or less, reached an understanding” on the bailout package and “in a day or two, we hope to reach a full agreement”.

    Fund officials seeking details of CPEC

    But it seems that “both sides are still engaged in an intense conversation on the final details of that full agreement,” an official source told Dawn. “So, the IMF mission is now more likely to visit Islamabad in May, not April.”

    Another official familiar with the Pakistan-IMF talks said, “Islamabad still hopes to conclude the agreement before June, as they believe the bailout package would help budget prospects.”

    The sources said that IMF officials were also seeking details of the China-Pakistan Economic Corridor (CPEC), along with a written guarantee from both Pakistan and China that the IMF assistance will not be used to repay loans to China.

    Read: IMF, World Bank urge caution with China loans

    The finance minister is likely to visit China on April 25 for talks on the IMF concerns over CPEC and IMF will wait to hear from him before it finalises the bailout package, the sources said.

    Meanwhile, both sides are engaged in “fine-tuning” the details of the proposed IMF programme. Pakistan wants the IMF to review some of the conditions it has attached to the package while the IMF insists that those conditions are absolutely essential for a successful completion of the programme.

    Pakistanis point out that this would be their 14th package with the IMF, if finalised. They argue that the conditions attached to previous programmes were also not fully implemented because they were too restrictive. Pakistan wants the IMF to focus on long-term structural reforms that help revive its economy instead of attaching conditions that would be difficult to implement.

    During negotiations on the new package, the Pakistani delegation told the IMF that they “do not want to commit to what we cannot implement”.

    When asked how much money did Pakistan expect from the IMF, a source said: “The amount and length of the programme also depends on the nature of the package. If the conditions are too restrictive, Pakistan would expect a larger package, i.e. more assistance for a longer period.”

    Some of the conditions proposed by the IMF include: making the State Bank independent, a market-oriented exchange rate, expanding the tax target by Rs5,000 billion, ending income tax concessions, more taxes on salaries, narrowing the amount of taxable income from Rs12 lakh a year to Rs4 lakh, reducing electricity and gas losses, no government interference in Nepra and Ogra policies, Rs140 billion electricity and gas revenue losses be recovered from consumers.

    The sticking points, however, are the demands for market-determined exchange rates and sharing details of Chinese loans which Pakistan is reluctant to do so.

    The IMF insists on full disclosure of all financial cooperation between Pakistan and China, including assistance related to infrastructure development, nuclear power plants, joint manufacturing of JF-17 Thunder fighter jets and procurement of submarines.

    The IMF is also demanding details of more than $6.5bn of commercial loans Pakistan has received from China in the past two and a half years.

    In July, China also deposited $2bn with the State Bank of Pakistan.

    Published in Dawn, April 15th, 2019

    https://www.dawn.com/news/1476211/imf-may-delay-visit-as-bailout-talks-still-going-on#comments
     
  2. maximuswarrior

    maximuswarrior ELITE MEMBER

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    Obviously the US is desperately begging for disclosure.

    Pakistan should show the IMF a massive middle finger and temporarily see through a rough economic period. These IMF loans aren’t worth it.
     
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  3. Arsalan 345

    Arsalan 345 SENIOR MEMBER

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    Imf asking too much.americans want complete isolation of Pakistan because their new strategic partner India wants it.block nato supply.let Americans suffer in Afghanistan.
     
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  4. maximuswarrior

    maximuswarrior ELITE MEMBER

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    We need to hint towards closing down supply routes.

    The Americans are backstabbing whores. So this is what we get after bringing the Taliban to the table. Asad Umar begs for IMF leniency in Washington.

    The government needs to grow some spine and stop begging for IMF loans. Just call it a day and continue with harsh economic policies. Concentrate on improving tax collection and efficiency at home. Also drastically cut on imports.
     
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  5. Arsalan 345

    Arsalan 345 SENIOR MEMBER

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    Actually we are living in delusions.we still believe that America is best friend.look at their cooperation with India.they are providing India weapons,asking UN to take action against Chinese stance on masood Azhar and they isolated China at UN.look at indian lobby in America and read Trump tweet about pakistan.i think he said terrorist safe haven.i think this is enough.this relation can no longer progress.it will end on divorce.
     
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  6. maximuswarrior

    maximuswarrior ELITE MEMBER

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    This new government needs to start showing some spine. This one-sided exploitation cannot continue.

    Asad Umar is hawkish about IMF loans. I don’t like that. Imran Khan needs to intervene and say that enough is enough.

    The American rear is on fire ever since Pakistan has been cooperating with China on various projects.

    We need to play our cards NOW. This is the right time. Start with Taliban talks and supply routes.
     
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  7. Zulfiqar

    Zulfiqar FULL MEMBER

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    If the bold part is true then this is what happens when you have people siphoning off billions from the country.

    We now have to lay down with a bottle of sarson ka tail stuck up our behind with a board saying "Aao sarey mar lo".

    This is how you lose sovereignty for a few billion dollar loan.

    This is why we need structural reforms and these need to be implemented by presidential ordinance if need be. Enough with the short cuts and band-aiding our economy.
     
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  8. Death Professor

    Death Professor FULL MEMBER

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    We only have two active plants, are there any plans for more? Would really like to know if there are more planned nuclear power plants.
     
  9. SoulSpokesman

    SoulSpokesman FULL MEMBER

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    I dont know why Pakistan gives so much importance to IMF. They should ask IMF to take a hike. Whatever temporary fiscal/trade imbalance may exist can be made good by the all weather friend PRC, for whom this will be chicken feed.

    Regards
     
  10. Wow

    Wow FULL MEMBER

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    For all the ret@rds praising the rejuvenation of American Pakistani relationship and asking for more f 16 here it is
    I dont know why people who want us off the map whould have ur best interest in mind
    I just curse all the politician who got us in this position damn them
     
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  11. Sabretooth

    Sabretooth FULL MEMBER

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    [​IMG]
     
  12. nahtanbob

    nahtanbob SENIOR MEMBER

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    Quit spinning

    When you ask for loans you have to disclose your existing financial situation. Otherwise nobody gives you a loan.
    Either that or pledge something valuable as collateral
     
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  13. newb3e

    newb3e SENIOR MEMBER

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    a lesson for ameriki worshippers in Pakistan never to trust them!!
     
  14. LeGenD

    LeGenD ELITE MEMBER

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    All those members who are commenting that PTI-led government should tell IMF to take a hike, but what is the solution?

    We have borrowed from KSA, UAE and China respectively, and the problem is still there.

    Yaar, kuch soch samaj key comment kiya karo. Laughing stock banney kaa bahaut shouk hai?

    Absolutely.

    Apply for loan in a bank, and relevant officers will request you to disclose your other financial obligations first, or take a hike. Reason is straightforward: RISK EVALUATION
     
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  15. Hassannn85

    Hassannn85 FULL MEMBER

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    Whatever temporary fiscal/trade imbalance may exist can be made good by the all weather friend PRC, for whom this will be chicken feed.

    Regards[/QUOTE]

    China will never do that. Kis duniya men rehte hain aap bhai?!

    They are our allies but always drive a hard bargain.