IMF agreement to be signed once Saudi, Abu UAE confirm financial support

[epebble]

it is not default is the end of the world. Sometimes, it can be an unavoidable, and indeed needed, step for restructuring something that has steadfastly refused to do so for decades.

Unfortunately, one can't be flippant about default. If you take Argentina, which has been on the default treadmill for quite some time, it may be like a roach motel for the economy. This is for a country with high human development and blessed with productive land that produces and exports so much (agricultural products). Pakistan has none of this and also lacks a history of good polity. That sounds more like Lebanon.

This is what Argentinian growth looks like.

Pakistan is black hole for money unfortunately.

From Hotel California:

They're living it up at the Hotel California What a nice surprise (what a nice surprise) Bring your alibis Mirrors on the ceiling The pink champagne on ice And she said: "We are all just prisoners here of our own device" ... Last thing I remember I was running for the door I had to find the passage back To the place I was before "Relax," said the night man "We are programmed to receive You can check out any time you like But you can never leave"

 

[flameboard]

Pakistani diplomats with no diplomacy skills SMH

Pass on every bargaining stick and no long term planning.

 

[VCheng]

Unfortunately, one can't be flippant about default. If you take Argentina, which has been on the default treadmill for quite some time, it may be like a roach motel for the economy. This is for a country with high human development and blessed with productive land that produces and exports so much (agricultural products). Pakistan has none of this and also lacks a history of good polity. That sounds more like Lebanon.

Who is being flippant here? What cannot be cured must be endured, including all consequences thereof. Pretty logical, pretty simple.

 

[epebble]

Who is being flippant here?

GOP (and its friends & supporters)

 

[VCheng]

GOP (and its friends & supporters)

Only to be expected, given the historical intentional refusal to make any meaningful structural changes required. Nothing new here.

 

[TheDarkKnight]

This is not a puzzle. It is the logical consequence of Pakistan's choices made through the years: play stupid games, win stupid prizes.

I think it has to do with poor negotiations done with IMF. We some how committed about these countries, thinking of IMF officials as suck ers (add the attitude to ‘sort them out’) and now we have put ourselves in this situation where logically it is not possible to get out. I think we should just apologize to IMF and renegotiate with the assumption that UAE and SA support is not there anymore. Other suggestion is to send a high powered military delegation again and play juta chupai with MBS/MBZ (paisay daido , jootay lailo).

 

[VCheng]

now we have put ourselves in this situation where logically it is not possible to get out.

I foresaw such a predicament years ago, when I suggested that default may be a necessary outcome to force things in the right direction when Pakistan remains unwilling to do what is required, only to be ridiculed during the heady days of PTI economic miraculous mirage. And yet here we are. I would even dare say now that even a 2/3rds majority will not be able to achieve much. Numbers do not lie.