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After signing IMF deal, Pakistan intends to gather around $10b in loans

What u call a cynical view...I would call a logical expectation. If a snake bites u...every time u approach it...and yet(for some reason) u approached the snake again...u SHOULD expect it to bite again...and no it would not be a cynical view at that point...it would be a logical expectation based on ur previous experience and knowing the nature of that snake. To expect anything else would be simply retarded.

This PDM isn't some new political party formed by angels who freshly descended to earth. This is a collection of PML-N, PML-Q, PPPP, MQM, etc. Same old snakes who ppl have been bitten by over and over and ppl know their nature full well.
PDM is a new beast. It is a balance between the fiscal conservativeness of PLM-N and pro-poor policies of PPP. I don't know what has come out of this eccentric union. Like they say in mutual funds ad: Past performance is not indicative of future results :undecided:
 
For the love of the motherland please complete the IMF program this time so that it ends up being our last.

Last one? You do know that IMF loans are used to pay interest on existing loans? There is no end to IMF loans once you accumulate as much debt as Pakistan has. This is a vicious circle.
 
PDM is a new beast. It is a balance between the fiscal conservativeness of PLM-N and pro-poor policies of PPP. I don't know what has come out of this eccentric union.
Yeah u can quit trolling now..it's becoming obvious. U clearly have no idea of Pakistan's politics.

PML-N and PPPP coming together? Oh boy we have never seen that before
...what a joke
Past performance is not indicative of future results
These lines may work well in some grand speech about self help or something...but they won't help ur argument here.
 
View attachment 862035
  • Miftah Ismail says Pakistan expecting $9 billion as budgetary/project loans other than IMF tranche.
  • IMF’s Executive Board likely to meet after second week of August to consider combined approval of seventh and eighth reviews.
  • IMF fails to mention any desired structural reforms to remove bottlenecks of economy that resulted in surfacing of twin deficits.
ISLAMABAD: After striking a staff-level agreement with the IMF, Pakistan has made plans to generate approximately $9 to $10 billion in loans from other multilateral creditors, including the World Bank, Asian Development Bank and Islamic Development Bank through programme and project lending during the current fiscal year.

The revival of the IMF programme will pave the way for the provision of a Letter of Comfort (LoC) from the Fund and the revival of programme/policy lending from the WB, ADB and IDB.

The IMF’s Executive Board is expected to meet after the second week of August 2022 to consider the combined approval of the seventh and eighth reviews and the release of $1.17 billion tranche under the Extended Fund Facility (EFF).

However, the revival of the IMF programme hinges upon price increases only, and the Fund failed to mention any desired structural reforms for removing bottlenecks of the economy that ultimately resulted in the surfacing of twin deficits, known as the budget deficit and the current account deficit.

Related items​


The IMF literally ignored the rising inflation in its statement on the occasion of striking staff level agreement with Pakistani authorities, giving strength to the perception that Washington-based lender is totally indifferent to miseries being faced by inflation-stricken middle-income salaried and pensioners.

The flow of circular debt touching Rs850 billion has raised many eyebrows because there is total electricity billing of Rs1,600 billion out of which piling up of circular debt of Rs850 billion caused shocks and alarm bells among the policymakers.

The IMF statement also confirmed that the government had allocated Rs68 billion to Rs72 for the provision of Sasta Petrol and Sasta Diesel, which is a peanut amount in the aftermath of escalating inflationary pressures.

When contacted about plans for the IMF’s executive board meeting, Minister for Finance Miftah Ismail on Thursday said that it would be held after the second week of August 2022 for approving Pakistan’s request for the release of $1.17 billion tranche.

To another query regarding the resumption of programme loans from other multilateral creditors, Miftah Ismail replied that Pakistan was expecting $9 billion as budgetary/project loans and there would be a separate amount from the IMF as well. So, in totality, there are indications that Islamabad will muster up dollar loans of approximately $10 billion from multilateral creditors during the current fiscal year 2022-23.

A statement issued by the IMF on Thursday morning stated that an International Monetary Fund (IMF) team, led by Nathan Porter, has finalized discussions for the combined seventh and eighth reviews of Pakistan’s economic program supported by an IMF Extended Fund Facility (EFF). At the conclusion of the discussions, Porter stated, “The IMF team has reached a staff-level agreement (SLA) with the Pakistan authorities for the conclusion of the combined seventh and eight reviews of the EFF-supported program. The agreement is subject to approval by the IMF’s Executive Board. Subject to Board approval, about $1,177 million (SDR 894 million) will become available, bringing total disbursements under the program to about $4.2 billion. Additionally, in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board will consider an extension of the EFF until end-June 2023 and an augmentation of access by SDR720 million that will bring the total access under the EFF to about US$7 billion.

“Pakistan is at a challenging economic juncture. A difficult external environment combined with procyclical domestic policies fuelled 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.

“To stabilise the economy and bring policy actions in line with the IMF-supported program, while protecting the vulnerable, policy priorities include steadfast implementation of the FY2023 budget. The budget aims to reduce the government’s large borrowing needs by targeting an underlying primary surplus of 0.4 percent of GDP, underpinned by current spending restraint and broad revenue mobilisation efforts focused particularly on higher-income taxpayers. Development spending will be protected, and fiscal space will be created for expanding social support schemes. The provinces have agreed to support the federal government’s efforts to reach the fiscal targets, and Memoranda of Understanding have been signed by each provincial government to this effect.

“Catch-up in power sector reforms: On the back of weak implementation of the previously agreed plan, the power sector circular debt (CD) flow is expected to grow significantly to about PRs850 billion in FY22, overshooting program targets, threatening the power sector’s viability, and leading to frequent power outages. The authorities are committed to resuming reforms including, critically, the timely adjustment of power tariff including for the delayed annual rebasing and quarterly adjustments, to improve the situation in the power sector and limit loadshedding.

“Proactive monetary policy to guide inflation to more moderate levels. Headline inflation exceeded 20 percent in June, hurting particularly the most vulnerable. In this regard, the recent monetary policy increase was necessary and appropriate, and monetary policy will need to be geared towards ensuring that inflation is brought steadily down to the medium-term objective of 5–7 percent. Importantly, to enhance monetary policy transmission, the rates of the two major refinancing schemes EFS and LTFF (which have over recent months been raised by 700 bps and 500 bps respectively) will continue to be linked to the policy rate. Greater exchange rate flexibility will help cushion activity and rebuild reserves to more prudent levels.

“Reducing poverty and strengthen social safety: During FY22, the unconditional cash transfer (UCT) Kafalat scheme reached nearly 8 million households, with a permanent increase in the stipend to PRs14,000 per family, while a one-off cash transfer of PRs2,000 (Sasta Fuel Sasta Diesel, SFSD) was granted to about 8.6 million families to alleviate the impact of rampant inflation. For FY23, the authorities have allocated PRs364 billion to BISP (up from PRs 250 in FY22) to be able to bring 9 million families into the BISP safety net, and further extend the SFSD scheme to additional non-BISP, lower-middle class beneficiaries.

“Strengthen governance: To improve governance and mitigate corruption, the authorities are establishing a robust electronic asset declaration system and plan to undertake a comprehensive review of the anti-corruption institutions (including the National Accountability Bureau) to enhance their effectiveness in investigating and prosecuting corruption cases.

“Steadfast implementation of the outlined policies, underpinning the SLA for the combined seventh and eighth reviews, will help create the conditions for sustainable and more inclusive growth. The authorities should nonetheless stand ready to take any additional measures necessary to meet program objectives, given the elevated uncertainty in the global economy and financial markets.

“The IMF team thanks the Pakistani authorities, private sector, and development partners for fruitful discussions and cooperation during the discussions.” When contacted, Dr Khaqan Najeeb, former adviser Ministry of Finance, said it was indeed comforting to see that Pakistan and the IMF have reached a staff-level agreement. “This paves the way for the completion of the 7th and the 8th Review. It should alleviate fears of a near-term challenging scenario and unlock funding from other multilateral lenders and friendly countries. All this should help build Pakistan’s foreign exchange reserves which have fallen below $10 billion. One hopes that this will calm the FX and Euro bonds market which have been quite uneasy for the past few months.”

He explained it would be wise to think of the next few months as breathing space, with the realisation of the severity of challenges both on the domestic and global front. The energy sector would be the most challenging. The circular debt of Rs850 billion reached in FY22 in the power sector is far above what one would have hoped and seriously threatens the financial viability of the power sector at a time of global energy shortages.

Much beyond pricing adjustments are needed to create sustainability, including reforms of DISCOs, a new tariff, strengthening the policy and regulatory environment besides negotiation with IPPs, he concluded.

Beggars will remain beggars.
This money will again end up in UK Flats/Offshore and poor Pakistanis and their generations will pay the debts forever.
The celebrations for convicted criminals, and thugs. liars, absconders, murderers, thieves, and robbers are on and the 'TCs' are happy with it.
 
Yeah u can quit trolling now..it's becoming obvious. U clearly have no idea of Pakistan's politics.

PML-N and PPPP coming together? Oh boy we have never seen that before
...what a joke
Sad reality is that key economic decisions must be taken out of the hands of elected politicians. Vote seeking will gaurantee stupid decision making. Economic and energy policies should be handled by a fixed term council of experts (that can not be removed until term is up) and not elected jokers playing musical chairs every other year.
 
Sad reality is that key economic decisions must be taken out of the hands of elected politicians. Vote seeking will gaurantee stupid decision making. Economic and energy policies should be handled by a fixed term council of experts (that can not be removed until term is up) and not elected jokers playing musical chairs every other year.
A better solution would be to make it a presidential system...so it brings more stability to a government(making it more likely it will complete its term)...
...with the parliamentary system...Pakistanis have turned it into a joke(as we just saw with this recent horse trading). Since most of the power resides with the prime minister...it's far too easy to topple him/her when those in the parliament are bought and sold like a commodity.

If there was a more stable system...then even if a fully corrupt idiot became the head of state and his party held the majority(senate/house)...the ppl can vote them out after their full term...and they won't be able to topple the next one in.
 
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Hum to poori koshish kar rahy hai ke 1 dollar bhi na bhegy wapas pakistan

Same, I and everybody I know here in Canada have STOPPED sending money to Pakistan, because our hard earn money is NOT for corrupt Generals & crook politicians.

These begharat's take loan's as that nobody wouldn't have to return it. Loan has been take in the name of Pakistan but the money goes in foreign bank accounts of Generals & politicians.
 
A better solution would be to make it a presidential system...so it brings more stability to a government(making it more likely it will complete it's term)...
...with the parliamentary system...Pakistanis have turned it into a joke(as we just saw with this recent horse trading). Since most of the power resides with the prime minister...it's far too easy to topple him/her when those in the parliament are bought and sold like a commodity.

If there was a more stable system...then even if a fully corrupt idiot became the head of state and his party held the majority(senate/house)...the ppl can vote them out after their full term...and they won't be able to topple the next one in.
Honestly problem is elected officials trying to get votes with dumb populist economic policies. USA is a presidentional system yet Biden has ruined the economy due to massive money printing to buy votes. He wanted to print and spend trillions more.....luckily he was stopped by Senator Manchin.

Major constitutional over haul won't happen in Pakistan. Better to let the jokers play musical chairs.....its opium for the masses. Key descisions should be made by unelected experts on a committee with fixed terms.
 
Same, I and everybody I know here in Canada have STOPPED sending money to Pakistan, because our hard earn money is NOT for corrupt Generals & crook politicians.

These begharat's take loan's as that nobody wouldn't have to return it. Loan has been take in the name of Pakistan but the money goes in foreign bank accounts of Generals & politicians.

Well said, these beghairats don't deserve a single penny since they are too busy filling thier pockets by corrupt means and treating Pakistanis like dirt.
 
Last one? You do know that IMF loans are used to pay interest on existing loans? There is no end to IMF loans once you accumulate as much debt as Pakistan has. This is a vicious circle.
Pakistan's debt isn't any near as big as our media makes it out to be. What Pakistan needs is policies that will lead towards sustainable growth. As our GDP keeps growing sustainably, we can continue to take on more and more debts to further grow our productive sectors without much worry. However, our politicians either deliberately don't want to do this or they are simply too retarded to do this. One doesn't have to be a rocket scientist to see which of our sectors are most productive and most revenue generating. It is beyond me why our governments don't go all out in supporting the IT industry.

It isn't that difficult to avoid the IMF. All we have to do is make policies that incentivise exports and stop the rent-seeking clowns who can't do sh*t without government subsidies. As I stated in one of my posts this week that our government needs to set certain export targets for our highly unproductive industrialists and if these targets aren't met within the given timeframe then no more subsidies for them and they can go to hell.
 
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Bravo Donkey league who are proud of securing IMF deal, despite cursing PTI for approaching IMF.

PDM donkeys will keep borrowing money, they have no economic plan to repay and finish debt repayments.

View attachment 862035
  • Miftah Ismail says Pakistan expecting $9 billion as budgetary/project loans other than IMF tranche.
  • IMF’s Executive Board likely to meet after second week of August to consider combined approval of seventh and eighth reviews.
  • IMF fails to mention any desired structural reforms to remove bottlenecks of economy that resulted in surfacing of twin deficits.
ISLAMABAD: After striking a staff-level agreement with the IMF, Pakistan has made plans to generate approximately $9 to $10 billion in loans from other multilateral creditors, including the World Bank, Asian Development Bank and Islamic Development Bank through programme and project lending during the current fiscal year.

The revival of the IMF programme will pave the way for the provision of a Letter of Comfort (LoC) from the Fund and the revival of programme/policy lending from the WB, ADB and IDB.

The IMF’s Executive Board is expected to meet after the second week of August 2022 to consider the combined approval of the seventh and eighth reviews and the release of $1.17 billion tranche under the Extended Fund Facility (EFF).

However, the revival of the IMF programme hinges upon price increases only, and the Fund failed to mention any desired structural reforms for removing bottlenecks of the economy that ultimately resulted in the surfacing of twin deficits, known as the budget deficit and the current account deficit.

Related items​


The IMF literally ignored the rising inflation in its statement on the occasion of striking staff level agreement with Pakistani authorities, giving strength to the perception that Washington-based lender is totally indifferent to miseries being faced by inflation-stricken middle-income salaried and pensioners.

The flow of circular debt touching Rs850 billion has raised many eyebrows because there is total electricity billing of Rs1,600 billion out of which piling up of circular debt of Rs850 billion caused shocks and alarm bells among the policymakers.

The IMF statement also confirmed that the government had allocated Rs68 billion to Rs72 for the provision of Sasta Petrol and Sasta Diesel, which is a peanut amount in the aftermath of escalating inflationary pressures.

When contacted about plans for the IMF’s executive board meeting, Minister for Finance Miftah Ismail on Thursday said that it would be held after the second week of August 2022 for approving Pakistan’s request for the release of $1.17 billion tranche.

To another query regarding the resumption of programme loans from other multilateral creditors, Miftah Ismail replied that Pakistan was expecting $9 billion as budgetary/project loans and there would be a separate amount from the IMF as well. So, in totality, there are indications that Islamabad will muster up dollar loans of approximately $10 billion from multilateral creditors during the current fiscal year 2022-23.

A statement issued by the IMF on Thursday morning stated that an International Monetary Fund (IMF) team, led by Nathan Porter, has finalized discussions for the combined seventh and eighth reviews of Pakistan’s economic program supported by an IMF Extended Fund Facility (EFF). At the conclusion of the discussions, Porter stated, “The IMF team has reached a staff-level agreement (SLA) with the Pakistan authorities for the conclusion of the combined seventh and eight reviews of the EFF-supported program. The agreement is subject to approval by the IMF’s Executive Board. Subject to Board approval, about $1,177 million (SDR 894 million) will become available, bringing total disbursements under the program to about $4.2 billion. Additionally, in order to support program implementation and meet the higher financing needs in FY23, as well as catalyze additional financing, the IMF Board will consider an extension of the EFF until end-June 2023 and an augmentation of access by SDR720 million that will bring the total access under the EFF to about US$7 billion.

“Pakistan is at a challenging economic juncture. A difficult external environment combined with procyclical domestic policies fuelled 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.

“To stabilise the economy and bring policy actions in line with the IMF-supported program, while protecting the vulnerable, policy priorities include steadfast implementation of the FY2023 budget. The budget aims to reduce the government’s large borrowing needs by targeting an underlying primary surplus of 0.4 percent of GDP, underpinned by current spending restraint and broad revenue mobilisation efforts focused particularly on higher-income taxpayers. Development spending will be protected, and fiscal space will be created for expanding social support schemes. The provinces have agreed to support the federal government’s efforts to reach the fiscal targets, and Memoranda of Understanding have been signed by each provincial government to this effect.

“Catch-up in power sector reforms: On the back of weak implementation of the previously agreed plan, the power sector circular debt (CD) flow is expected to grow significantly to about PRs850 billion in FY22, overshooting program targets, threatening the power sector’s viability, and leading to frequent power outages. The authorities are committed to resuming reforms including, critically, the timely adjustment of power tariff including for the delayed annual rebasing and quarterly adjustments, to improve the situation in the power sector and limit loadshedding.

“Proactive monetary policy to guide inflation to more moderate levels. Headline inflation exceeded 20 percent in June, hurting particularly the most vulnerable. In this regard, the recent monetary policy increase was necessary and appropriate, and monetary policy will need to be geared towards ensuring that inflation is brought steadily down to the medium-term objective of 5–7 percent. Importantly, to enhance monetary policy transmission, the rates of the two major refinancing schemes EFS and LTFF (which have over recent months been raised by 700 bps and 500 bps respectively) will continue to be linked to the policy rate. Greater exchange rate flexibility will help cushion activity and rebuild reserves to more prudent levels.

“Reducing poverty and strengthen social safety: During FY22, the unconditional cash transfer (UCT) Kafalat scheme reached nearly 8 million households, with a permanent increase in the stipend to PRs14,000 per family, while a one-off cash transfer of PRs2,000 (Sasta Fuel Sasta Diesel, SFSD) was granted to about 8.6 million families to alleviate the impact of rampant inflation. For FY23, the authorities have allocated PRs364 billion to BISP (up from PRs 250 in FY22) to be able to bring 9 million families into the BISP safety net, and further extend the SFSD scheme to additional non-BISP, lower-middle class beneficiaries.

“Strengthen governance: To improve governance and mitigate corruption, the authorities are establishing a robust electronic asset declaration system and plan to undertake a comprehensive review of the anti-corruption institutions (including the National Accountability Bureau) to enhance their effectiveness in investigating and prosecuting corruption cases.

“Steadfast implementation of the outlined policies, underpinning the SLA for the combined seventh and eighth reviews, will help create the conditions for sustainable and more inclusive growth. The authorities should nonetheless stand ready to take any additional measures necessary to meet program objectives, given the elevated uncertainty in the global economy and financial markets.

“The IMF team thanks the Pakistani authorities, private sector, and development partners for fruitful discussions and cooperation during the discussions.” When contacted, Dr Khaqan Najeeb, former adviser Ministry of Finance, said it was indeed comforting to see that Pakistan and the IMF have reached a staff-level agreement. “This paves the way for the completion of the 7th and the 8th Review. It should alleviate fears of a near-term challenging scenario and unlock funding from other multilateral lenders and friendly countries. All this should help build Pakistan’s foreign exchange reserves which have fallen below $10 billion. One hopes that this will calm the FX and Euro bonds market which have been quite uneasy for the past few months.”

He explained it would be wise to think of the next few months as breathing space, with the realisation of the severity of challenges both on the domestic and global front. The energy sector would be the most challenging. The circular debt of Rs850 billion reached in FY22 in the power sector is far above what one would have hoped and seriously threatens the financial viability of the power sector at a time of global energy shortages.

Much beyond pricing adjustments are needed to create sustainability, including reforms of DISCOs, a new tariff, strengthening the policy and regulatory environment besides negotiation with IPPs, he concluded.

What a great news. SS has achived in couple of months what IK could not in 3.5 years.
 
Pakistan's debt isn't any near as big as our media makes it out to be. What Pakistan needs is policies that will lead towards sustainable growth. As our GDP keeps growing sustainably, we can continue to take on more and more debts to further grow our productive sectors without much worry. However, our politicians either deliberately don't want to do this or they are simply too retarded to do this. One doesn't have to be a rocket scientist to see which of our sectors are most productive and most revenue generating. It is beyond me why our governments don't go all out in supporting the IT industry.

It isn't that difficult to avoid the IMF. All we have to do is make policies that incentivise exports and stop the rent-seeking clowns who can't do sh*t without government subsidies. As I stated in one of my posts this week that our government needs to set certain export targets for our highly unproductive industrialists and if these targets aren't met within the given timeframe then no more subsidies for them and they can go to hell.

All of it is true and discussed till death. For of all of this what you don't want and need is Bajwa and PDM. Unfortunately this is exactly what Pakistan has at the moment.
 

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