Govt scrambles as IMF rejects Pakistan’s loan request

[TheDarkKnight]

I thought Pakistan just slammed IMF. I wish IMF director also does a press conference in Islamabad Press club, and announces to quit PTI.

 

[HAIDER]

ISLAMABAD:
A cabinet member revealed on Thursday that the International Monetary Fund (IMF) has rejected Pakistan’s request to lower the requirement of arranging $6 billion in new loans, leaving the government with no alternative but to try and revive the deal.

In a policy statement during the National Assembly Standing Committee on Finance, Minister of State for Finance Dr Aisha Pasha emphasised that returning to the IMF was Pakistan’s only option.

During the meeting chaired by Pakistan Muslim League-Nawaz (PML-N) MNA Qaiser Sheikh, the committee also discussed the possibility of using the newly enacted contempt of the Parliament law against Finance Minister Ishaq Dar for his continued absence.

According to Dr Pasha, Pakistan requested the IMF to consider reducing the $6 billion external financing requirement based on new current account deficit data, but the Fund did not agree. She explained that there was an understanding to arrange $3 billion before the staff-level agreement and the remaining $3 billion after the agreement, but the IMF was insisting on “demonstrating the $6 billion.”

Despite a call by Prime Minister Shehbaz Sharif to IMF Managing Director Kristalina Georgieva, the IMF has not changed its stance, as indicated by the minister of finance’s statement.
When asked about a Plan B in case talks with the IMF fail to yield positive results, Dr Aisha Pasha responded that, “There is no option other than going back to the IMF, and I categorically say there is no Plan B.” She reiterated that the government’s aim was to pursue the IMF program.

However, Dr Pasha’s statement contradicts Finance Minister Dar’s previous position that Pakistan should try to manage with or without the IMF.

MNA Ali Pervaiz Malik cautioned against hasty decisions, suggesting that Pakistan should exercise patience and not consider steps like granting amnesty on undeclared foreign currency held by Pakistani citizens.

Of the total $6.5 billion bailout package, the IMF has disbursed $3.9 billion over the past four years, with the remaining amount contingent upon the completion of three pending reviews.

MNA Dr Ramesh Kumar attributed the continued delay in reviving the IMF program to Pakistan’s foreign policy direction.

Dr Pasha claimed that Pakistan has secured arrangements for $4.5 billion from Saudi Arabia, the United Arab Emirates, the World Bank, and Geneva pledges. She noted that the remaining $1.5 billion could only be arranged once the staff-level agreement is achieved.

Dar expressed optimism on Thursday, stating that Pakistan’s external financing is in order, and he expects a staff-level agreement to be signed this month while speaking to the business community.

Dr Pasha mentioned that Pakistan has shared the budget for the next fiscal year with the IMF, and the government is awaiting the lender’s comments on the budget. She claimed that the budget is broadly in line with the IMF guidelines.

However, numbers seen by The Express Tribune, the IMF may require Pakistan to substantially increase revenue targets and reduce certain expenditures. The proposed primary budget surplus falls below the IMF’s requirements.

Committee members expressed disappointment over the government’s decision to withhold budget numbers from parliamentarians while sharing them with the IMF.

The meeting also aimed to discuss the budget strategy paper for fiscal year 2023-24, but Dr Pasha explained that the paper was not ready due to the PM’s decision to establish eight different committees on budget matters.

Dr Nafisha Shah of the Pakistan People’s Party (PPP) highlighted that the Ministry of Finance is legally obligated to prepare and release the budget strategy paper by April 15th, according to the Public Finance Management Act. Pervaiz recommended taking action against the finance ministry for violating the Act of Parliament.

The committee also addressed concerns about restrictions on imports and reports of illegal means being used to import goods on deferred payments. Deputy Governor SBP Dr Inayat Hussain confirmed that they are investigating the details of these imports and will take enforcement and corrective measures as necessary.

Govt scrambles as IMF rejects Pakistan’s loan request | The Express Tribune

‘No option other than going back to IMF, no Plan B,’ says Aisha Pasha

tribune.com.pk

==========

Looks like they'll be paying for their Whisky by driving uber in Amreeka. Once the country is bankrupt the rats will be the first to flee. No wages = no henchmen.

Then what's Dar's plan B.... he has officially announced.

 

[Dalit]

Why aren't the generals abducting IMF officials? A software update is required.

 

[Chute]

View attachment 932683

The face you make when you thought it was a fart, but you follow through….

Damn bro, you need an extra title to reflect your quality humour. Where do I submit this recommendation? lol

 

[ThunderCat]

Pakistan should sell off any valuables it has to spare, and there is stuff to spare. It's the most dignified way to survive without a loan.

They were plans to sell off tanks back to Ukraine. Go with it.

Easier stated than done, but it can be done. This war was an opportunity for Pakistan to sell off plenty of spare armaments from it's industry at lower prices.

 

[ProudThamizhan]

If I were in Pakistan govt I'd camp out for a meeting with Elon Musk. Offer all the land power labor he needs FREE and FREE of taxes, to move the next 5 Tesla plants to Pakistan. Use Gwadar port and the CPEC highways to export to world and to China respectively. In return Musk to fund Pakistan loan repayments for the next 5 years. It is WIN WIN WIN for Pakistan, China and Musk.

I am very surprised Pakistan is not thinking creatively and this circular begging is allowed to prolong for so long. Seriously, when you have a country a COUNTRY at your disposal, you don't have to beg. Look at N.Korea !

 

[Azadkashmir]

sell off politicians and military jenrals it pay off all loans.

 

[koolio]

Why aren't the generals abducting IMF officials? A software update is required.

After that make them do press conferences and pledge unconditional loans lol

 

[Baburfromsarmarkand]

who funds the IMF? They need to bully those countries individually.

 

[ghazi52]

,..,.,

New IMF programme?​

Editorial
June 3, 2023

WITH the PTI chief effectively sidelined for now, the PML-N-led government is looking to provide some relief to the people and businesses before the next election. It has already cut petrol prices significantly and plans to present a relatively expansionary budget to revive its political fortunes.

Some things may not be possible because of strict IMF conditions. Hence, it has announced it will let the current IMF programme end this month, after seven months of inconclusive talks on the ninth programme review, with Finance Minister Ishaq Dar blowing hot and cold over Islamabad’s worsening ties with the Fund.

Reportedly, the PML-N would like to negotiate a fresh loan facility with the lender, probably after the polls. In between, it expects the IMF to approve the ninth review and release the $1.2bn tranche before the programme ends on June 30.

The tranche’s release is crucial to the government’s plans to provide relief to the public in the budget, secure other foreign funding and relax import restrictions to please the angry business community before the polls.

In order for that to happen, Mr Sharif recently held a virtual meeting with the IMF’s managing director to pave the way for the conclusion of the review and the release of funds. In this regard, the government has also shared its budget targets with the lender even though this was not required under the ninth review.

However, indications are that the Fund will not oblige and that the staff-level agreement — the talks for which were completed over three and a half months ago — won’t happen anytime soon.

Fund officials have made it quite clear that the agreement hinges on Pakistan’s ability to arrange fresh loans of $6bn to bridge this year’s gross financing gap.

The Fund is not ready to subscribe to Islamabad’s viewpoint that the significant reduction in the current account gap has cut financing requirements for the present year.

The hard time the IMF has given on the inconclusive ninth review is an indication that negotiations for a new funding programme will be even tougher. If the ninth review doesn’t come through, Pakistan’s foreign exchange reserves would deplete further in the run-up to the polls and the formation of a new government; also, its debt sustainability indicators will deteriorate.

 

[Fasbre2]

View attachment 932683

The face you make when you thought it was a fart, but you follow through….

The only thing this accountant knows is how to fiddle his and sharifs books.. otherwise as useless as a dead rat..

Then what's Dar's plan B.... he has officially announced.

Go to plan A

 

[Muji.Iqbal]

ISLAMABAD:
A cabinet member revealed on Thursday that the International Monetary Fund (IMF) has rejected Pakistan’s request to lower the requirement of arranging $6 billion in new loans, leaving the government with no alternative but to try and revive the deal.

In a policy statement during the National Assembly Standing Committee on Finance, Minister of State for Finance Dr Aisha Pasha emphasised that returning to the IMF was Pakistan’s only option.

During the meeting chaired by Pakistan Muslim League-Nawaz (PML-N) MNA Qaiser Sheikh, the committee also discussed the possibility of using the newly enacted contempt of the Parliament law against Finance Minister Ishaq Dar for his continued absence.

According to Dr Pasha, Pakistan requested the IMF to consider reducing the $6 billion external financing requirement based on new current account deficit data, but the Fund did not agree. She explained that there was an understanding to arrange $3 billion before the staff-level agreement and the remaining $3 billion after the agreement, but the IMF was insisting on “demonstrating the $6 billion.”

Despite a call by Prime Minister Shehbaz Sharif to IMF Managing Director Kristalina Georgieva, the IMF has not changed its stance, as indicated by the minister of finance’s statement.
When asked about a Plan B in case talks with the IMF fail to yield positive results, Dr Aisha Pasha responded that, “There is no option other than going back to the IMF, and I categorically say there is no Plan B.” She reiterated that the government’s aim was to pursue the IMF program.

However, Dr Pasha’s statement contradicts Finance Minister Dar’s previous position that Pakistan should try to manage with or without the IMF.

MNA Ali Pervaiz Malik cautioned against hasty decisions, suggesting that Pakistan should exercise patience and not consider steps like granting amnesty on undeclared foreign currency held by Pakistani citizens.

Of the total $6.5 billion bailout package, the IMF has disbursed $3.9 billion over the past four years, with the remaining amount contingent upon the completion of three pending reviews.

MNA Dr Ramesh Kumar attributed the continued delay in reviving the IMF program to Pakistan’s foreign policy direction.

Dr Pasha claimed that Pakistan has secured arrangements for $4.5 billion from Saudi Arabia, the United Arab Emirates, the World Bank, and Geneva pledges. She noted that the remaining $1.5 billion could only be arranged once the staff-level agreement is achieved.

Dar expressed optimism on Thursday, stating that Pakistan’s external financing is in order, and he expects a staff-level agreement to be signed this month while speaking to the business community.

Dr Pasha mentioned that Pakistan has shared the budget for the next fiscal year with the IMF, and the government is awaiting the lender’s comments on the budget. She claimed that the budget is broadly in line with the IMF guidelines.

However, numbers seen by The Express Tribune, the IMF may require Pakistan to substantially increase revenue targets and reduce certain expenditures. The proposed primary budget surplus falls below the IMF’s requirements.

Committee members expressed disappointment over the government’s decision to withhold budget numbers from parliamentarians while sharing them with the IMF.

The meeting also aimed to discuss the budget strategy paper for fiscal year 2023-24, but Dr Pasha explained that the paper was not ready due to the PM’s decision to establish eight different committees on budget matters.

Dr Nafisha Shah of the Pakistan People’s Party (PPP) highlighted that the Ministry of Finance is legally obligated to prepare and release the budget strategy paper by April 15th, according to the Public Finance Management Act. Pervaiz recommended taking action against the finance ministry for violating the Act of Parliament.

The committee also addressed concerns about restrictions on imports and reports of illegal means being used to import goods on deferred payments. Deputy Governor SBP Dr Inayat Hussain confirmed that they are investigating the details of these imports and will take enforcement and corrective measures as necessary.

Govt scrambles as IMF rejects Pakistan’s loan request | The Express Tribune

‘No option other than going back to IMF, no Plan B,’ says Aisha Pasha

tribune.com.pk

==========

Looks like they'll be paying for their Whisky by driving uber in Amreeka. Once the country is bankrupt the rats will be the first to flee. No wages = no henchmen.

Get a loan from China, and promise to pay them back in 20 years.

 

[313ghazi]

Get a loan from China, and promise to pay them back in 20 years.

Hi, we already owe you all this money already. Lend us some more, we'll pay it back - promise.

Don't pay attention to the fact we haven't paid back earlier debts and other people's debts and even then IMF loansharks won't lend to us anymore.

 

[Muji.Iqbal]

Hi, we already owe you all this money already. Lend us some more, we'll pay it back - promise.

Don't pay attention to the fact we haven't paid back earlier debts and other people's debts and even then IMF loansharks won't lend to us anymore.

I said forget IMF. I am talking about China.

 

[ThunderCat]

Get a loan from China, and promise to pay them back in 20 years.

Better idea. Why don't you just STFU with your troll posts and get lost.