IMF bailout package: Pakistan takes the crucial decision

[VCheng]

Pakistan will not seek IMF bailout package, finance minister Asad Umar has revealed.

For how long?

And what are the conditions associated with any other source of rescue funds?

 

[Imad.Khan]

So first of all whatever happened to the talk about not taking loans? Now it seems everything is justifyable one way or the other. Just because your in power. Secondly asking your countrymen to fund a project of this magnitute may sound poetic but its absolutely absurd and ibstand by it. Thats because its peanuts. We need around 16 billion dollars. Check the fund status and do the math. Its one the largest dams in the region not some gali ka transformer. Such projects are financed by the goverment budget with tax money. I pay approx 50 million ruppees in tax annually, yet i have to pay another 1000 dollars for dam charity. What a joke. The people have changed, the game seeems to be the same.

As i said previously its a contingency plan, it doesnt mean they are actually going for it but they doing their homework.

As for the dam fund, its a donation request, no one is putting a gun on your head and forcing you to pay for it. Secondly with every dollar donated it will be less dollar that the govt will have to put in to complete it. Finally it has also made the overseas Pakistanis feel like they can also contribute in something big for the betterment of Pakistan.

As for your tax value, 50mil rupees means 5 crore rupees, which is equal to $405,571 appox. Apko lambie lambie chorna ki adat hai kiya?

 

[wali87]

As i said previously its a contingency plan, it doesnt mean they are actually going for it but they doing their homework.

As for the dam fund, its a donation request, no one is putting a gun on your head and forcing you to pay for it. Secondly with every dollar donated it will be less dollar that the govt will have to put in to complete it. Finally it has also made the overseas Pakistanis feel like they can also contribute in something big for the betterment of Pakistan.

As for your tax value, 50mil rupees means 5 crore rupees, which is equal to $405,571 appox. Apko lambie lambie chorna ki adat hai kiya?

Thats exactly my point. That they should not go for it no matter what the financial situation. Instead the govt should harness the resources that are present in our country. IMF loans always have hidden surprises and strings that are much more damaging to the economy.

The dam fund is still a feint effort in my opinion. They're better ways to give overseas Pakistanis a sense of contribution, if thats what you say is one of its purpose.

Alhamdulillah, Thats precisely what I paid this year, more or less. Lying is a very common habit in our country these days, mostly amongst the youth I've noticed. Thankfully, I was brought up in a better way and at better time I guess.

 

[BHarwana]

Very simple: KSA came to our rescue.

Nope we never needed a bailout from day one. I told you before the elections Pakistan is not going to IMF. When I break some news trust me I am never wrong. The offer of KSA joining CPEC is more strategic than our rescue. Pakistan is taking KSA out of US influence and towards China. That is the only way there can be peace between Iran and KSA. So hang on and watch the world reshape on front of you. USA made a mistake taking Pakistan for granted.

 

[Kabira]

As i said previously its a contingency plan, it doesnt mean they are actually going for it but they doing their homework.

As for the dam fund, its a donation request, no one is putting a gun on your head and forcing you to pay for it. Secondly with every dollar donated it will be less dollar that the govt will have to put in to complete it. Finally it has also made the overseas Pakistanis feel like they can also contribute in something big for the betterment of Pakistan.

As for your tax value, 50mil rupees means 5 crore rupees, which is equal to $405,571 appox. Apko lambie lambie chorna ki adat hai kiya?

IMF is almost confirmed now. Asad umar is preparing public for IMF with increase in taxes, prices etc before official announcement.

Before governments used to go to IMF first and then blame them for increase in prices. Asad Umar is doing opposite of that.

 

[Pakistansdefender]

So we don’t need it yet we are meeting with them in case we need the loan in the future? Either mr Asad is stupid or he thinks that the people are naive. I mean we just got 10billion in charity from the Saudis for gods sake. Then we are begging the nation to fund a dam, which btw in my opinion is extremely irrational. Pathetic. Khan needs to do something out of the box else he too will be remembered as just another PM who talked a lot and didn’t manage anything in the end.

Where did saudis give anything. They would do investment which might take years.

 

[Kabira]

Where did saudis give anything. They would do investment which might take years.

Rumour of Saudi giving $10b was not true. But they have confirmed big investment. How much and where will be revealed in few weeks.

 

[Imad.Khan]

Thats exactly my point. That they should not go for it no matter what the financial situation. Instead the govt should harness the resources that are present in our country. IMF loans always have hidden surprises and strings that are much more damaging to the economy.

The dam fund is still a feint effort in my opinion. They're better ways to give overseas Pakistanis a sense of contribution, if thats what you say is one of its purpose.

Alhamdulillah, Thats precisely what I paid this year, more or less. Lying is a very common habit in our country these days, mostly amongst the youth I've noticed. Thankfully, I was brought up in a better way and at better time I guess.

Well they are trying not to go to IMF, i don't think Pakistan can afford more loans, but its better to be prepared if the situation becomes dire and they have no other options.

As per FBR report, you would be among the top 20 taxpayers in Pakistan, hats off to you mate. Do you mind sharing the Tax return you filed because i have never seen that kinda a figure in my life.

 

[FuturePAF]

IMF is almost confirmed now. Asad umar is preparing public for IMF with increase in taxes, prices etc before official announcement.

Before governments used to go to IMF first and then blame them for increase in prices. Asad Umar is doing opposite of that.

Yes and No. Enforcing Tax collection will be done incrementally; until enough money is raised to cover our costs. If not enough money is collected, more sectors will be taxed, and the public will be threaten with the government going to the IMF if they don't pay. Its Austerity, but under the government's terms not the IMF. speaking to the IMF are just to find out their Austerity terms. Asad Umar is planning on paying "Good Cop / Bad Cop". If he can't get enough tax money, and the threats fail to net enough taxes, then the he can go to the IMF in front of the public and then they will be reminded of what living under the IMF's restrictions look like.

Hopefully by then any IMF Bailout will be smaller then the $12 Billion Pakistan was planning on requesting, and people will want to pay taxes then live under the IMF's rules.

 

[Kabira]

Yes and No. Enforcing Tax collection will be done incrementally; until enough money is raised to cover our costs. If not enough money is collected, more sectors will be taxed, and the public will be threaten with the government going to the IMF if they don't pay. Its Austerity, but under the government's terms not the IMF. speaking to the IMF are just to find out their Austerity terms. Asad Umar is planning on paying "Good Cop / Bad Cop". If he can't get enough tax money, and the threats fail to net enough taxes, then the he can go to the IMF in front of the public and then they will be reminded of what living under the IMF's restrictions look like.

Hopefully by then any IMF Bailout will be smaller then the $12 Billion Pakistan was planning on requesting, and people will want to pay taxes then live under the IMF's rules.

Apparently Saudi Arabia is coming with $10b investment in CPEC. To be announced in few days.

 

[LeGenD]

Nope we never needed a bailout from day one. I told you before the elections Pakistan is not going to IMF. When I break some news trust me I am never wrong. The offer of KSA joining CPEC is more strategic than our rescue. Pakistan is taking KSA out of US influence and towards China. That is the only way there can be peace between Iran and KSA. So hang on and watch the world reshape on front of you. USA made a mistake taking Pakistan for granted.

Pakistan is taking loans from different sources: https://www.thenews.com.pk/print/36...487-billion-in-foreign-loans-grants-in-fy2018

Downside is complexity of different repayment schedules. Not wise in my books. Perhaps Asad Umar does not have a choice due to sentiments of the public and/or pressures of opposition. He knows that PML(N) will rub this matter on his face.

KSA is not under American influence. US - Saudi relations are grounded in convergence of interests and mutual regard on the whole. In fact, KSA is one of the most difficult countries to "appease." These relations just work out for both: https://ncusar.org/aa/2018/03/us-saudi-relationship-new-challenges-and-opportunities/

However, to give you an idea of Saudi rigidity and posturing: https://www.voanews.com/a/suspensio...rks-worsening-of-diplomatic-feud/4526381.html

A single tweet about Saudi human rights situation, triggered extreme response from KSA and Canada is in a limbo since. Hard to reason with KSA, my friend. You and I - both noticed shift in IK's tone in KSA, in favor of KSA while he was there. And IK visited KSA first. Sufficient hint for the wise.

KSA is seemingly the undeclared superpower of the Islamic bloc. Countries gravitate towards it, not the other way round. God factor at play, perhaps.

Offering KSA to join CPEC is a sign of improvement in our thought process. This imply that Pakistan is willing to look beyond China in terms of investments and this is necessary to curtail the prospects of Chinese influence. China is a great ally of Pakistan (no doubt) but it is a superpower and relations with a superpower are never balanced due to power imbalance; they just be managed carefully, and economic diversification helps.

As for mending KSA - Iran relations; unlikely. KSA see in Iran a strategic rival for supremacy in the Middle East, and there is an ideological dimension in this rivalry as well. KSA just wants to keep Pakistan under its sphere, and embracing CPEC is one way of doing this.

US took Pakistan for granted due to shortfalls in Pakistani diplomacy, corruption and limited investment. Now that US see anti-corruption drive in Pakistan and revamp of Pakistani diplomacy, it will treat Pakistan much better. YOU can exploit an entity which is enabling, not an entity which see you in the eye.

I respect your views, but I wanted you to know certain things which you missed. This is the beauty of discussions. Thanks.

 

[ziaulislam]

Pakistan is taking loans from different sources: https://www.thenews.com.pk/print/36...487-billion-in-foreign-loans-grants-in-fy2018

Downside is complexity of different repayment schedules. Not wise in my books. Perhaps Asad Umar does not have a choice due to sentiments of the public and/or pressures of opposition. He knows that PML(N) will rub this matter on his face.

KSA is not under American influence. US - Saudi relations are grounded in convergence of interests and mutual regard on the whole. In fact, KSA is one of the most difficult countries to "appease." These relations just work out for both: https://ncusar.org/aa/2018/03/us-saudi-relationship-new-challenges-and-opportunities/

However, to give you an idea of Saudi rigidity and posturing: https://www.voanews.com/a/suspensio...rks-worsening-of-diplomatic-feud/4526381.html

A single tweet about Saudi human rights situation, triggered extreme response from KSA and Canada is in a limbo since. Hard to reason with KSA, my friend. You and I - both noticed shift in IK's tone in KSA, in favor of KSA while he was there. And IK visited KSA first. Sufficient hint for the wise.

KSA is seemingly the undeclared superpower of the Islamic bloc. Countries gravitate towards it, not the other way round. God factor at play, perhaps.

Offering KSA to join CPEC is a sign of improvement in our thought process. This imply that Pakistan is willing to look beyond China in terms of investments and this is necessary to curtail the prospects of Chinese influence. China is a great ally of Pakistan (no doubt) but it is a superpower and relations with a superpower are never balanced due to power imbalance; they just be managed carefully, and economic diversification helps.

As for mending KSA - Iran relations; unlikely. KSA see in Iran a strategic rival for supremacy in the Middle East, and there is an ideological dimension in this rivalry as well. KSA just wants to keep Pakistan under its sphere, and embracing CPEC is one way of doing this.

US took Pakistan for granted due to shortfalls in Pakistani diplomacy, corruption and limited investment. Now that US see anti-corruption drive in Pakistan and revamp of Pakistani diplomacy, it will treat Pakistan much better. YOU can exploit an entity which is enabling, not an entity which see you in the eye.

I respect your views, but I wanted you to know certain things which you missed. This is the beauty of discussions. Thanks.

Saudis and UAE have a trillion dollars of investment fund among them..attracting just 5% will mean a chunk bigger than CPEC..

a logical alternative to IMF will be oil credit from saudis/IDB (which they will agree to if Pakistan refuses iran gas pipeline), restricting some imports (used cars fro example) and releasing bonds while aggressively attracting investment and inflows from mulitlateral donars like WB, AB

AIIB, AIIB has not even been approached since it was formed..

 

[wali87]

Well they are trying not to go to IMF, i don't think Pakistan can afford more loans, but its better to be prepared if the situation becomes dire and they have no other options.


As per FBR report, you would be among the top 20 taxpayers in Pakistan, hats off to you mate. Do you mind sharing the Tax return you filed because i have never seen that kinda a figure in my life.

Haha I wish I was part of that list.
Well technically my company pays that tax amount as it’s pvt ltd hence a separate legal entity. But it’s my company so it’s pretty much the same thing. As an individual I pay around 1.5 million annually aswell btw and I feel proud about it.The fact that I pay every single penny in tax to the govt. in a country where almost everyone evades it.

Well the figures aren’t all that big, if u have an idea of how much other large companies pay the govt every year. billions of rupees.

Share my tax returns? . How old are you janaab?

 

[shah_123]

https://twitter.com/x/status/1044972122496520194

 

[Hakikat ve Hikmet]

After finding the wealth's of the Pak Karuns (Malik Riaz etc.), who needs IMF????? Pak only needs to little hurry up before these wealth's get consumed into the earth like what happened to the original Karun and his wealth....