Govt offers IMF Rs190b in new taxes for bailout

[SunilM]

After going to IMF and with proper checks and balances economy will turn around in 24 months.

Nope. Thats not possible. You need a decade for that.

 

[xyxmt]

I thought Pakistan is not going to IMF.

Indians are taking us in their car

 

[Abdussamad]

Take a look at this language:

The official said the authorities have been explained that they would have to navigate through changed geo-political circumstances for which they would have to produce bankable fiscal and monetary plans that could be advocated by the IMF mission and the teams on merit before the executive board for approval.

Source

That's a roundabout way of saying uncle sam is unhappy with Pakistan so we have to do more to please the IMF!

Also they are admitting that there is no option but to go to the IMF now:

The authorities have been trying to gain time to see if the IMF’s insistence on upfront implementation of fiscal and monetary adjustment plans could be minimised through alternative financing plans but that was no more an option, the sources said, adding that they had to finally submit the MEFP to the Fund last week.

BTW IMF insists on free float of the rupee. They are not budging on that condition. Pakistani currency will crash if it is left to market forces. Prepare for heavy inflation in the coming months!

 

[jupiter2007]

Nope. Thats not possible. You need a decade for that.

I know 30 years of the neglect and wrong policies cannot be fixed Without proper measures and correct strategies. As long as IK government focuses on economy, I am confident that Asad can stabilize it in 24 months.

Here are few things that are very important to make the economy turnaround.

1) Restructuring FBR to collect the taxes.
2) resolving the NAB cases of assets beyond means.
3) Recovering the stolen money setting in foreign banks.
4) multi prung strategy to fix the economy.
*One window operation to make it easy for companies to invest in Pakistan.
*Introducing new agriculture technology/techniques to increase production (long term goal to provide training to farmers and equipment).
*Focus on 4 things that IK talked in his speech (Telecom, IT, Tourism and Promoting small businesses).

 

[rak_987]

@SunilM

You have so much concern about PAkistan, you've inspired me to post on indian pathetic situation as the indian reserves are set to be wiped out during modi re-election season.

All your crap you failed to acknowledge how Modi has screwed over billions of reserves and 3 RBI chairmen for his govt. spending. How much of the years Modi has wiped out by squandering 100+ bn reserves and external debt soaring over 550 bn? RBI credit rating has gone down this month even more.

Can't even speak on Modi's rape of the Indian rupee and reserves yet here trying to poke their nose in foreign state for their psy ops.

 

[kmc_chacko]

The minister said the fiscal deficit at the current level was not sustainable, which was one of the concerns of the IMF.

He said as a result of these measures, the current account deficit is expected to narrow down from $19 billion to $12.5-13 billion by the end of this fiscal year.

We have already arranged $12 billion to fill the financing gap and are not in a hurry for an IMF programme, said the minister.

He said Pakistan will pay 3.18% interest rate on the $3-billion Saudi Arabia loan. From next month the Saudi oil facility on deferred payments will become operational and Pakistan will receive $274 million oil on deferred payments per month, he said, adding talks with the United Arab Emirates (UAE) and China were underway. Pakistan will get commercial loans from China, he added.

When will FM will make up his mind about approaching IMF ? it is waste knocking door of pharma after committing suicide.

Ok, lets do the math. Pakistan will receive 6bn in loans i.e hard cash in total from SA + UAE in 6 installments in total. I.e 3 billion dollars from Saudi ( November 2018 to Jan 2019) and 3 Billion dollars from UAE ( Feb 2019 to April 2019). Add to this around 2 billion in commercial loans from the Chinese. This will be barely enough to keep forex reserves at 7 billion dollars ( after loan repayment + current account deficit). So at max till June 2019. After that its Back to IMF.

Are you considering EMI holidays ?

@SunilM

You have so much concern about PAkistan, you've inspired me to post on indian pathetic situation as the indian reserves are set to be wiped out during modi re-election season.

All your crap you failed to acknowledge how Modi has screwed over billions of reserves and 3 RBI chairmen for his govt. spending. How much of the years Modi has wiped out by squandering 100+ bn reserves and external debt soaring over 550 bn? RBI credit rating has gone down this month even more.

Can't even speak on Modi's rape of the Indian rupee and reserves yet here trying to poke their nose in foreign state for their psy ops.

1. Total Reserves - $ 309.913 Billions (April 2014) vs $ 393.734 Billions (December 2018) appreciation of $ 80+ billions.
https://www.rbi.org.in/scripts/WSSView.aspx?Id=19011
https://www.rbi.org.in/scripts/WSSView.aspx?Id=22639

2. Please do homework properly it is not RBI Credit Rating it is Credit Policy
https://www.moneycontrol.com/news/b...may-change-tone-of-policy-stance-3247851.html

 

[rak_987]

@kmc_chacko here you go blackie

April 2018

India total reserves $426 bln
external debt $529 bn [Mar 2018] india added $58 bn of debt in 1 year [from Mar. 2017]

https://tradingeconomics.com/india/foreign-exchange-reserves
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=44350

India's external debt all set to hit $ 550 bn in 2019
right now hovering around $510-540 bn between Mar and Dec 2018.

FII investments of $15 bn also withdrawn from India relocated back to North america.
India's former RBI chair Rajan has elaborated RBI rating set to downgrade

https://moveefy.com/2018/12/19/excess-reserve-transfer-may-hit-rbi-credit-rating-rajan/

REquest indians to first fix their own country and build toilets in their homes we know how to teach your auqaat

 

[kmc_chacko]

@kmc_chacko here you go blackie

April 2018

India total reserves $426 bln
external debt $529 bn [Mar 2018] india added $58 bn of debt in 1 year [from Mar. 2017]

https://tradingeconomics.com/india/foreign-exchange-reserves
https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=44350

India's external debt all set to hit $ 550 bn in 2019
right now hovering around $510-540 bn between Mar and Dec 2018.

FII investments of $15 bn also withdrawn from India relocated back to North america.
India's former RBI chair Rajan has elaborated RBI rating set to downgrade

https://moveefy.com/2018/12/19/excess-reserve-transfer-may-hit-rbi-credit-rating-rajan/

REquest indians to first fix their own country and build toilets in their homes we know how to teach your auqaat

RBI in India is an autonomous body and RBI Governors resist any interference of GoI in their day to day activity and with regards to spending $ RBI has the responsibility to keep Rupee Steady for the sake of exporter and they are doing their job and GoI will just keep an eye over it and give its suggestions when needed and for depleting reserve we can’t blame GoI for that as it was RBI decision.

RBI Governors never buckled or compromised under GoI pressure instead they resisted any GoI moves which hamper their policies. Even Urjit Patel who was considered and favourite of Modi refused to implement his policies and resigned. With regards to screwing 3 Governors, who gave you that info ?

You can’t blame GoI for Indians commercial borrowing from the overseas markets and NRIs parking higher amounts in bank deposits back home. Aren’t in other countries Private companies barrow money from overseas financials ? and will Govt pay that with tax payers pocket ?
https://economictimes.indiatimes.co...ing-and-nri-deposits/articleshow/64797461.cms

FIIs invest money for making profits and when global interest rates are rising due to US Fed raising its policy rates it’s natural that FIIs will shift money to US Fed bonds as its more secured than any other bonds or deposits or markets, isn’t it ?

For you kind information, GoI is investing $ 20 billion for its “Clean India” project its way more than Pakistan’s present Reserve + combined bailout packages.
https://www.bloomberg.com/news/arti...-toilet-building-spree-is-a-windfall-in-india

GoI was asking RBI to transfer the excess reserve it has for investment on infra & other projects and RBI is refusing for that. R Rajan was speaking with reference to that and no where connected to overall financial position.

RBI can transfer Rs 1 trillion of excess reserves to government: Report
https://economictimes.indiatimes.co...to-government-report/articleshow/66809854.cms

Decision on excess reserves should rest with RBI alone: Kaushik Basu
https://www.livemint.com/Politics/l...reserves-should-rest-with-RBI-alone-Kaus.html

View: Four economists argue for Arun Jaitley against Urjit Patel on RBI reserves
https://economictimes.indiatimes.co...atel-on-rbi-reserves/articleshow/67151367.cms

 

[nahtanbob]

"He also disclosed that Pakistan has secured $3 billion loan from Saudi Arabia at 3.18% interest rate. "


Why 3.18% ? why not 3.2% or, 3.1% ? Looks like Saudis were not ready to lower Interest rate much.

what is the duration of the loan ?

 

[tarrar]

I don’t know how much truth is there in this news but the fact is Pakistan needs money & Pakistan is having money less than what is needed, we can also see here that because corruption is under control Pakistan is surviving with the less money.

People who are barking are those who have committed corruption at mass scale through money laundering & today these very same people are the defenders of their DEMOCRAZY.