IMF asks govt to reopen CPEC deals

[Wood]

This is par for the course with any IMF negotiation. As a favored lender of last resort, IMF is privileged (and in fact obligated) to make sure that the country seeking loan does not harbor any outstanding loan engagements that will jeopardize the borrowers ability to pay back IMF loans. It has been reported that even some private loans could have concealed sovereign guarantees which can become a serious liability in future. IMF, as a responsible lender, is right to make sure that such factors are not overlooked while deciding on the merit of loan application. This procedure will not change regardless of who is at power in the country that seeks borrow from IMF.

 

[Communism]

This is par for the course with any IMF negotiation. As a favored lender of last resort, IMF is privileged (and in fact obligated) to make sure that the country seeking loan does not harbor any outstanding loan engagements that will jeopardize the borrowers ability to pay back IMF loans. It has been reported that even some private loans could have concealed sovereign guarantees which can become a serious liability in future. IMF, as a responsible lender, is right to make sure that such factors are not overlooked while deciding on the merit of loan application. This procedure will not change regardless of who is at power in the country that seeks borrow from IMF.

IMF pretty much never touches Western loans ever.

So that's obviously a fig leaf.

 

[Catalystic]

So…..what will neutrals instruct cherry blossom to do now? Go to china with 54 people to beg to renegotiate??
Looks like cocomo man facing some heat hahsha

 

[Sayfullah]

Good!
Chinese are businessmen.
Imf is businessmen.
Chinese IPP’s are sucking our blood with capacity payments.
Imf wants us to renegotiate those deals so we have more money to pay their loans.
Both imf and Chinese don’t care about us more then their interests.
We should learn how to use both of them when we need how we want to, in order to get the most benefit out of both.

 

[GriffinsRule]

https://twitter.com/x/status/1534746600073228288

But beggars can't be choosers ... Just remember that

 

[Wood]

IMF pretty much never touches Western loans ever.

So that's obviously a fig leaf.

This is not true. IMF enforced austerity on Greece as I recall.

It is however no secret that IMF could relax some rules if the borrowers have an amicable relationship with the primary lending countries in IMF. That is also fair in my opinion. The lender will always hold the leverage.

 

[Communism]

I honestly do not see how Pakistan recovers from this.

China was Pakistan's last lifeline.

Now IMF is demanding that Pakistan cuts it's lifeline from China to get IMF aid.

Pakistan is now stuck in a catch-22.

 

[koolio]

So if this imported government doesn't oblige to IMF demands, does that mean no IMF bailout??

 

[Dalit]

IMF is in with a lot of luck. Bajwa is in town and willing to conceal all CPEC details.

I honestly do not see how Pakistan recovers from this.

China was Pakistan's last lifeline.

Now IMF is demanding that Pakistan cuts it's lifeline from China to get IMF aid.

Pakistan is now stuck in a catch-22.

IMF is essentially papa America.

 

[313ghazi]

They are literally asking you(Pakistan) to stand up for yourself and to stop being so submissive. You got the short end of the deal based on an objective assessment by the IMF. They are doing you a solid by requesting that you renegotiate terms.

Also that “deeper than the ocean” friend China should understand the predicament you’re in. IMF demands are now public domain. Last time I checked there were tons of fluent English speakers within the Chinese administration.

They're deliberately screwing our ties with our Eastern allies to force us into thier camp as lackies. They want us to be boot lickers of the West and thier stooges, like the goons they've imposed in our government.


China offered us credit when nobody else would. When you can only afford to shop at 1 place then you pay the price being asked, you can't shop around for a deal because nobody else will offer you a better deal.

These allegedly expensive IPP's were signed AFTER the same western countries refused to give Pakistan access to nuclear technology for energy purposes whilst giving India access to the tech and the market. We are not idiots we have not forgotten the NSG episodes.

 

[brehanlala]

Everyone keeps repeating that narrative, but if you dig down into it, it's a standard commercial contract with very favorable terms to Pakistan (when rated against standard commercial deals)

The narrative that these deals were "rip-offs" simply doesn't stand up to serious scrutiny.

Pakistan ordered more capacity than it could use, and now doesn't want to pay for it, it's pretty simple.

Lol do you know what are you talking about ? Extended capacity is on papers only whereas the load shedding is happening for up to 12 hours. If the deal is so lucrative for Pakistan then why it never came to public domain ? It was/is full of corruption from both sides to begin with. EX PMIK wanted to renegotiate it as it was not in Pakistan's interest. Sorry to say we saw you as a brother but you did the same to us what you did to Srilanka and other African countries. If you cannot have the credit line open then it is better to bring in front of IMF so my countrymen must also see higher than mountains deeper than oceans and sweeter than honey fraandship.

 

[DocEinstein]

China can get the attention of lumber 1 real fast by recalling the J-10 and suspending JF-17 production.

In the long run China already knows it is better off working with Afghanistan and Iran.

Only a small number of J10 have arrived so far. They can very well demand full payment before releasing any more.
As far as JF-17 is concerned, Pakistan will be left with part hollow shells that are being assembled here if production stops in China because they do not want to defer payments.
But not to worry .
Nukes are still available to be rolled back to get a squadron or 2 of decades old F-Sola's. (+ Commission of course for the next retirement package)

 

[Catalystic]

Its hopeless, its best they default and declare bankruptcy and tell everyone to eff off….go take money from accounts of bhuttos and sharifs and generals

 

[Communism]

Lol do you know what are you talking about ? Extended capacity is on papers only whereas the load shedding is happening for up to 12 hours. If the deal is so lucrative for Pakistan then why it never came to public domain ? It was/is full of corruption from both sides to begin with. EX PMIK wanted to renegotiate it as it was not in Pakistan's interest. Sorry to say we saw you as a brother but you did the same to us what you did to Srilanka and other African countries. If you cannot have the credit line open then it is better to bring in front of IMF so my countrymen must also see higher than mountains deeper than oceans and sweeter than honey fraandship.

From what I have seen in Pakistan's partisan politics, all of the parties are the same and just various incarnations of the same establishment.

They like to blame each other but they aren't very different from each other and don't do things all that differently from each other.

Also I'm an American, lol.

You are repeating the completely debunked narrative that all serious academics have debunked for years, so I'm guessing your view is coming from a partisan local Pakistani political narrative that is a derivative of it.

To be honest, Imran Khan coming in as a populist leader that repeated that debunked narrative was probably the beginning of the end of Pakistan as an independent entity, as he seems to be the incarnation of the establishment that wanted to pivot from China to the U.S. to begin with, having laid the groundwork for those narratives, and now with the current regime change, it has completed full circle.

Being the populist that he was/is, he has managed to deflect many internal problems and failures externally, which has greatly damaged Pakistan's international relations with it's traditional partners.

This outline of events seems like the most likely:

https://www.reddit.com/r/pakistan/comments/v3eh1r

 

[Wood]

IMF is essentially papa America.

The US has only 16.5% of the voting rights in IMF

IMF Members' Quotas and Voting Power, and IMF Board of Governors

Lists IMF members, Quotas, Governors, and Voting Power

www.imf.org