IMF dictates fiscal policies to Pakistan

[Finer]

It'd make IK's job even easier....

Why everybody loves IK?

Everyone love opposition. It is that easy. Being PM means whatever decision you make is always within the mind of main establishments, mafias, loans and their party. And then some changes as coins for nation.

 

[Zibago]

The correct headline is this:

IMF wants Pakistan to live within its means.

I know what it means but now that the shoe is on the other foot I have no desire to give them any legroom

Countries that are in need of IMF support are required to present a plan gives confidence to IMF that the borrowed loan can be paid back. IMF does not force the borrower to borrow anything. Imran went to IMF on his own accord after running an election under the promise of death over IMF

One silver lining with having IMF as a lender over bilateral loan arrangements is that IMF's guidelines for loan approval forces the borrower to follow a responsible fiscal and monetary policy. I wonder if this was responsible for the much celebrated currency devaluation in Pakistan under Imran's tenure

The opposition called following market rates as petrol bomb, gas bomb and selling poor of Pakistan to imf but now the shoe is on the other foot I don't think PTI should give them any breathing space

 

[Zowais]

IMF dictates fiscal policies to Pakistan​

It demanded steep fiscal adjustments, discontinuation of the amnesty scheme, increase in fuel prices, increase in power tariffs, and restoration of taxes before the country could expect to unlock the $3 billion.
ByNews Desk

23 April 2022
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As the incumbent government’s Finance Minister headed for Washington for the latest meeting with the International Monetary Fund to secure future loans, rumors of possibly stressful news, with some suggesting that the IMF might refuse to continue with the program, started to catch the air. Abuzz with speculations, the political atmosphere started to hum down as official reports started coming in. As per the initial reports, the finance minister Miftah Ismail, while negotiating the loan program, agreed to the lender’s recommendations to slash subsidies granted on major commodities, especially petroleum.
IMF also put forth a series of preconditions that Pakistan has to meet before IMF releases the pending installment of loans. It demanded steep fiscal adjustments, discontinuation of the amnesty scheme, increase in fuel prices, increase in power tariffs, and restoration of taxes before the country could expect to unlock the $3 billion. After the meeting, Ismail said that he had “good discussions” with the IMF. In the meeting, it was emphasized that Pakistan would remove the subsidy on fuel. Following the meeting, Miftah Ismail, in an interview with foreign media, said that “We can’t afford to do the subsidies we’re doing. So we’re going to have to curtail this”. In the interview, he emphasized that the former Prime Minister, before leaving the office, had set up a financial “trap” for his successor. He added that Imran Khan had derailed the economy through his mismanagement and his ill-thought-out policies, such as the amnesty scheme for businesses.

Read More: Rupee plunges after reports by World Bank, IMF
Finance Minister Ismail, before embarking on the trip, said that “I will go to the IMF, and we will get it restored.” Referring to the recent subsidies on petroleum products announced by the former Prime Minister Imran Khan, he said, “The government will do the required belt-tightening. We will get budget discipline back on track.” However, he added that the Prime Minister had advised the Finance Minister to pass on the minimum possible burden to the people.
To clarify, last month, Prime Minister Imran Khan unveiled a major relief package that included but was not limited to a Rs 10 per liter reduction in petrol prices, bringing the price of petrol down to approximately Rs 150 per liter. He added that the cost would not be revisited before announcing the next budget. Subsequently, the new government came to power and maintained the petrol prices, only to revisit the decision a few days later. Reviewing the decision, Ismail wrote on Twitter that “the decision announced last night” to continue with the prevalent subsidies “was a tough one and will have to be revisited.” He added that the “government was losing Rs. 21 per liter on petrol and Rs at the current pricing. 52 per liter on diesel.” He estimated that at this rate, the government would lose Rs. 250 crore per day or Rs.3600 crore in two weeks, far more than the expense of “running the entire civilian federal government plus the entire BISP/Ehsaas programme.”
Read More: Another achievement by PTI: Last condition of IMF fulfilled
It is pertinent to mention that Pakistan went to the IMF in 2019, and under the agreement, Pakistan is to receive about US$6 billion for 39 months, and so far, it has received almost half it. The IMF program is scheduled to end in September.

IMF dictates fiscal policies to Pakistan

As the incumbent government's Finance Minister headed for Washington for the latest meeting with the IMF to secure future loans

www.globalvillagespace.com

Earlier one party used to launder borrowed money, now 13 will. What people gonna get is debt, stripping off subsidies, more taxes, and at top, "do more".

It'd make IK's job even easier....

Why everybody loves IK?

True. But what we fear is that they won't leave anything in Pakistan, till IK comes back. Each one of these 13 parties was has potential of laundering 35% of borrowed money to their foreign accounts. Imagine what will 13 combined do.

 

[Big_bud]

As per latest IMF report:
Pakistan economy was growing at 5.6% despite worst economic crisis world over due to Covid. Record public assistance package was provided during Covid via the Ehsaas Emergency Cash program. 179 Billion Rs were distributed to over 15 million low income families. Our Current Account Deficit was at the lowest. Unemployment rate was low. Yes, there were effects of global inflation in Pakistan due to Covid and Ukraine war. Pakistan had the cheapest fuel as compared to the world, even in Australia the base fuel price hit 2.2$ per liter which is roughly 286 PKR per liter. Pakistan is a fuel importer not producer, despite that IK did what he could do to cushion the effects of inflation. Record exports, record crops an honest attempt to turn around the economy. But then why was IK thrown out that conveniently? Are all other institutions of Pakistan exceptionally high performers? Why was it so necessary to overthrow IK and install a totally corrupt and rotten regime?

 

[Wood]

The opposition called following market rates as petrol bomb, gas bomb and selling poor of Pakistan to imf but now the shoe is on the other foot I don't think PTI should give them any breathing space

Welcome to democracy. Party partisanship over national interest is the name of this game

The is why a strong majority is required to form a stable government

 

[Zibago]

Welcome to democracy. Party partisanship over national interest is the name of this game

The is why a strong majority is required to form a stable government

We need a Presidential system
This parliamentary system will be the end of Pakistan as for partisan takes well I believe in an eye for an eye
Government is about to raise prices from 150 to 180 at least and will take them to 240

Pti should not let go of such a soft ball

 

[Wood]

We need a Presidential system
This parliamentary system will be the end of Pakistan as for partisan takes well I believe in an eye for an eye
Government is about to raise prices from 150 to 180 at least and will take them to 240

Pti should not let go of such a soft ball

Presidential system is risky because it concentrates executive power without check. This is something that Musharraf tried before and Zardari undid it while being a President himself. First person in Pakistan's history to voluntarily give up power as he was praised back then

 

[Zibago]

Presidential system is risky because it concentrates executive power without check. This is something that Musharraf tried before and Zardari undid it while being a President himself. First person in Pakistan's history to voluntarily give up power as he was praised back then

In our parliamentary system Punjab has too much power while in Presidential system a leader would need to win all provinces to be elected

 

[ziaulislam]

IMF dictates fiscal policies to Pakistan​

It demanded steep fiscal adjustments, discontinuation of the amnesty scheme, increase in fuel prices, increase in power tariffs, and restoration of taxes before the country could expect to unlock the $3 billion.
ByNews Desk

23 April 2022
https://www.facebook.com/sharer.php?u=https://www.globalvillagespace.com/imf-dictates-fiscal-policies-to-pakistan/
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As the incumbent government’s Finance Minister headed for Washington for the latest meeting with the International Monetary Fund to secure future loans, rumors of possibly stressful news, with some suggesting that the IMF might refuse to continue with the program, started to catch the air. Abuzz with speculations, the political atmosphere started to hum down as official reports started coming in. As per the initial reports, the finance minister Miftah Ismail, while negotiating the loan program, agreed to the lender’s recommendations to slash subsidies granted on major commodities, especially petroleum.
IMF also put forth a series of preconditions that Pakistan has to meet before IMF releases the pending installment of loans. It demanded steep fiscal adjustments, discontinuation of the amnesty scheme, increase in fuel prices, increase in power tariffs, and restoration of taxes before the country could expect to unlock the $3 billion. After the meeting, Ismail said that he had “good discussions” with the IMF. In the meeting, it was emphasized that Pakistan would remove the subsidy on fuel. Following the meeting, Miftah Ismail, in an interview with foreign media, said that “We can’t afford to do the subsidies we’re doing. So we’re going to have to curtail this”. In the interview, he emphasized that the former Prime Minister, before leaving the office, had set up a financial “trap” for his successor. He added that Imran Khan had derailed the economy through his mismanagement and his ill-thought-out policies, such as the amnesty scheme for businesses.

Read More: Rupee plunges after reports by World Bank, IMF
Finance Minister Ismail, before embarking on the trip, said that “I will go to the IMF, and we will get it restored.” Referring to the recent subsidies on petroleum products announced by the former Prime Minister Imran Khan, he said, “The government will do the required belt-tightening. We will get budget discipline back on track.” However, he added that the Prime Minister had advised the Finance Minister to pass on the minimum possible burden to the people.
To clarify, last month, Prime Minister Imran Khan unveiled a major relief package that included but was not limited to a Rs 10 per liter reduction in petrol prices, bringing the price of petrol down to approximately Rs 150 per liter. He added that the cost would not be revisited before announcing the next budget. Subsequently, the new government came to power and maintained the petrol prices, only to revisit the decision a few days later. Reviewing the decision, Ismail wrote on Twitter that “the decision announced last night” to continue with the prevalent subsidies “was a tough one and will have to be revisited.” He added that the “government was losing Rs. 21 per liter on petrol and Rs at the current pricing. 52 per liter on diesel.” He estimated that at this rate, the government would lose Rs. 250 crore per day or Rs.3600 crore in two weeks, far more than the expense of “running the entire civilian federal government plus the entire BISP/Ehsaas programme.”
Read More: Another achievement by PTI: Last condition of IMF fulfilled
It is pertinent to mention that Pakistan went to the IMF in 2019, and under the agreement, Pakistan is to receive about US$6 billion for 39 months, and so far, it has received almost half it. The IMF program is scheduled to end in September.

IMF dictates fiscal policies to Pakistan

As the incumbent government's Finance Minister headed for Washington for the latest meeting with the IMF to secure future loans

www.globalvillagespace.com

Isnt that the job of IMF?
IMF job is to fix fiscal problems of the a country with its money

This is like saying doctor is dictating my diet
Dont go to IMF
dont susbidize rupee or anything and you will never need IMF..promote exports
E.g most african countries..they never needed IMF

Presidential system is risky because it concentrates executive power without check. This is something that Musharraf tried before and Zardari undid it while being a President himself. First person in Pakistan's history to voluntarily give up power as he was praised back then

Not really..presdent cant pass finance bill its still the oarliment
In pakistan it will not solve the problem

 

[Zibago]

In pakistan it will not solve the problem

It will result in head of state that is elected by all Pakistanis instead of just a portion of Pakistan

 

[Wood]

In our parliamentary system Punjab has too much power while in Presidential system a leader would need to win all provinces to be elected

What if you don't have a leader who can win all states? Diverse countries like Pakistan are less likely to have such a guy.

I think what you are looking for is a replacement for first past the post type election. You should consider 'ranked ballots' or another alternate vote systems where people can choose more than 1 leader option and rank them by their priority. I would like a similar system for India and Canada as well.

 

[ziaulislam]

It will result in head of state that is elected by all Pakistanis instead of just a portion of Pakistan

Not really
See in presdential system
Oresident has executive
But he can still be removed by parliment with 2/3 majority
Or he cant pass finance bill/budget without parliment

The problem of pakistan is society accepts corruption as norm..it isnt about system its about the society acceoting corruption

If any system actually protects small minority parties and may better suit pakistan

In presdential system zardari will simply buy all the parliment (obvisouly with army blessing)

 

[ziaulislam]

 

[Maula Jatt]

Not really
See in presdential system
Oresident has executive
But he can still be removed by parliment with 2/3 majority
Or he cant pass finance bill/budget without parliment

The problem of pakistan is society accepts corruption as norm..it isnt about system its about the society acceoting corruption

If any system actually protects small minority parties and may better suit pakistan

In presdential system zardari will simply buy all the parliment (obvisouly with army blessing)

@Zibago mutli ethnic countries are better suited for parlimentry democracy not presidential because of this reason

 

[ziaulislam]

@Zibago mutli ethnic countries are better suited for parlimentry democracy not presidential because of this reason

Pakistan issue is not thr system
Its the people

Its amazing how a religious leader(supported by all religious leaders some of whom are very pious) claims corruption isnt an issue and buying off people is fine and assers beyond means is okay

Society sets the rule...in the past slavery, rascim, lyning of young blacks, was acceptable and normal

In pakistan corruption is normal and acceptable
Molesting is acceptable hence we see zubair shahb on tv
This isnt a system problem