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No removal of subsidies before IMF talks

SoulSpokesman

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Miftah Ismail rules out removal of fuel, energy subsidies ahead of policy-level talks with IMF


In a way this is a positive development for the ordinary Pakistani citizens. They cannot sustain a fuel, power price hike now, Would result in immeasurable hardship and chaos. Could result in a revolution as well.

While the forex position is perilous and the twin deficits are alarming for sure, the GOP must negotiate other sources of funding till the economy can sustain such price hikes

Any suggestions from experts here?

Niaz sahib @niaz
Dada @Joe Shearer
Kaptaan sb @Indus Pakistan
Areesh bhai @Areesh
@Jango
@Norwegian
@Chak Bamu
@Vapnope

Regards
 

pikkuboss

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Miftah Ismail rules out removal of fuel, energy subsidies ahead of policy-level talks with IMF


In a way this is a positive development for the ordinary Pakistani citizens. They cannot sustain a fuel, power price hike now, Would result in immeasurable hardship and chaos. Could result in a revolution as well.

While the forex position is perilous and the twin deficits are alarming for sure, the GOP must negotiate other sources of funding till the economy can sustain such price hikes

Any suggestions from experts here?

Niaz sahib @niaz
Dada @Joe Shearer
Kaptaan sb @Indus Pakistan
Areesh bhai @Areesh
@Jango
@Norwegian
@Chak Bamu
@Vapnope

Regards
CATCH-22 situation. IMF won't talk until removal of subsidy on fuel either.
 

Jango

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It's tricky.

IMF won't give money, allies won't give money if IMF won't, and so on.

We might see 4 day weeks, curfew after 8 or 9 in markets, and other such measures. The import measures taken right now are cosmetic, they don't have any real impact on the import bill. We might see a complete ban on CBU as well soon. Right now it was removed at the last moment due to pressure by the auto companies.

Let's see what happens.

That is why a government is for 4/5 years, so you can take the tough decisions without worrying about the political ramifications.
 

Wood

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The constant flip flop of the administration on the issue of fuel subsidy must be confusing for IMF. Heck, at this point even Miftah may not be certain about his last public statement on fuel subsidies :disagree:

"I will tell the IMF to give me in writing what they want and that I will speak to my boss in Islamabad," Ismail said. "I will come back after finalising matters with the IMF and bring good news."

:blink:
 
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pikkuboss

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The constant flip flop of the administration on the issue of fuel subsidy must be confusing for IMF. Heck, at this point even Miftah may not be certain about his last public statement on fuel subsidies :disagree:
India reducing fuel prices has added more fuel to the fire as Imran Khan is using this news as political tool repeatedly since yesterday and also linking this price cut to Russian crude. No escape route visible.

 

Wood

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India reducing fuel prices has added more fuel to the fire as Imran Khan is using this news as political tool repeatedly since yesterday and also linking this price cut to Russian crude. No escape route visible.

Yes, but the writing is on the wall. No IMF loan means no short term respite. So far, the charm offensive by Bilawal in Washington has not yielded any results. Under the circumstances, dancing to Imran's tune is not something that PDM can afford to do :disagree:
 

araz

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Think again! Mufta heading to doha as IMF adamant on abolition of subsidies. Stuck between a rock 🪨 and a hard place 😪
It is a useless trip. The problem is they could have reversed all these subsidies and put the blame squarely ion IK shoulders. They would have been in a much better position to talk to IMF and the houses of Saud and other Middle Eastern houses. If Zardari is the architect of this deal he may well ask Blinken to not give anything to this government as the blame comes on the PML N while he gets off Scot free. meanwhile the country is systematically destroyed and economy allowed to go in a tailspin from which it will take it years to recover.It is heart breaking to see as we were just on the verge of recovering.
A
 

Jango

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"I will tell the IMF to give me in writing what they want and that I will speak to my boss in Islamabad...

...and my boss will ask his boss in London, who will ask his accountant also in London. Then he will ask the guy put him in this predicament in the first place.
 

nangyale

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...and my boss will ask his boss in London, who will ask his accountant also in London. Then he will ask the guy put him in this predicament in the first place.
To which Bajwa will reply, that I have completed the task assigned to me by Lu.

Now you clean up the shit while I am away to pastures new (only need to wait till October)
 

pikkuboss

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Pakistan is going to pay dearly for each second of delay in this deal and if this deal is stuck till next year election then God save Pakistan because Imran Khan is going to be in Power after election and IMF will turn a blind eye to Imran Khan.
 

truthseeker2010

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It is a useless trip. The problem is they could have reversed all these subsidies and put the blame squarely ion IK shoulders. They would have been in a much better position to talk to IMF and the houses of Saud and other Middle Eastern houses. If Zardari is the architect of this deal he may well ask Blinken to not give anything to this government as the blame comes on the PML N while he gets off Scot free. meanwhile the country is systematically destroyed and economy allowed to go in a tailspin from which it will take it years to recover.It is heart breaking to see as we were just on the verge of recovering.
A

All thanks to the people who think they are the men at their best and nobody thinks better in the interest of the country than them. Bajwa and Co May you rot in the worst of hell after death.
 

PakSword

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It's tricky.

IMF won't give money, allies won't give money if IMF won't, and so on.

We might see 4 day weeks, curfew after 8 or 9 in markets, and other such measures. The import measures taken right now are cosmetic, they don't have any real impact on the import bill. We might see a complete ban on CBU as well soon. Right now it was removed at the last moment due to pressure by the auto companies.

Let's see what happens.

That is why a government is for 4/5 years, so you can take the tough decisions without worrying about the political ramifications.
Ban of import will deteriorate the tax revenue. LOL

It is a useless trip. The problem is they could have reversed all these subsidies and put the blame squarely ion IK shoulders.
Not long ago, they were criticizing Imran Khan on rising fuel prices despite them knowing fully that the factors are all external.

How can they justify the U Turn now specially when Khan is charging on them will full might?
 

maithil

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They should take one firm decision and stick to it. Either commit to removing subsidies and get IMF funding or, keep subsidies and work on alternative solutions to plug the gap. This daily change of stance does not help.
 

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