IMF dictates fiscal policies to Pakistan

[Zibago]

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

 

[Waterboy]

All the points presented forward are valid by the IMF. God bless immi for the petrol landmine. Detracked the IMF program and subsequently blew the rupee as well.

 

[Zibago]

All the points presented forward are valid by the IMF. God bless immi for the petrol landmine. Detracked the IMF program and subsequently blew the rupee as well.

Hakomat ney mulk IMF ko bech diya was PDM mantra for 4 years now they will get no legroom from us

 

[Wood]

Countries that are in need of IMF support are required to present a plan that gives IMF a confidence 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

 

[S.Y.A]

All the points presented forward are valid by the IMF. God bless immi for the petrol landmine. Detracked the IMF program and subsequently blew the rupee as well.

...and yet tarin is saying that money was already set aside for petrol subsidies.

 

[VCheng]

IMF dictates fiscal policies to Pakistan

The correct headline is this:

IMF wants Pakistan to live within its means.

 

[Waterboy]

...and yet tarin is saying that money was already set aside for petrol subsidies.

Lies.

 

[khansaheeb]

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

See I was proven right, Pakistani people are being fooled by the good guys and bad guys gimmick. These politicians are all part of the same gang just fooling the Pakistani public into long term servitude for the Zion interest leachers.

 

[AZ1]

Lies.

only lies is pdm and pmln harm the poor

 

[Waterboy]

only lies is pdm and pmln harm the poor

Man honestly this subsidy funds can be directed towards development funds or projects that may reduce green house effect. Lekin nahi petrol ki subsidy do

 

[AZ1]

Man honestly this subsidy funds can be directed towards development funds or projects that may reduce green house effect. Lekin nahi petrol ki subsidy do

hahah just month ago you were crying poor peolle suffering, inflation is high dollar high blah blah and now this lol

Your nawaz made project in 2018 capacity payment we use it or not we have to pay and we are paying in billions.
nxt project metro trai.ln, zero income rather call white elephant govt have to provide subsidy to run it.


When your people suffering with money and hunger you dont go making roads rather than provide them with food.

Now because your pmln failed to provide any releif to public you saying this green house effect crap. Sharam tum ko magar nahi ati

 

[313ghazi]

All the points presented forward are valid by the IMF. God bless immi for the petrol landmine. Detracked the IMF program and subsequently blew the rupee as well.

Wa Ji wa patwariyo.

When he let prices rise it was patttrrroll bumb, now he subsidised it, its landmine.

 

[Hakikat ve Hikmet]

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

Why everybody loves IK?

 

[Big_bud]

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

It was Pakistan's army and Gen bajwa who forced Imran to go to IMF saying that we have a lot more things to do than dealing with financial uncertainty all the time. That's why Khan didn't seem to have much of a plan. Because his original plan was VETO-ed by Bajwa.

 

[Wood]

It was Pakistan's army and Gen bajwa who forced Imran to go to IMF saying that we have a lot more things to do than dealing with financial uncertainty all the time. That's why Khan didn't seem to have much of a plan. Because his original plan was VETO-ed by Bajwa.

When did Imran reveal this bombshell?!