IMF man to head State Bank of Pakistan

[Enigma SIG]

There is no fixing the system until you fix Ribbah.
Keep trying to fix things while at war with God, and keep wondering why you keep going down the shit hole.

UAE and GCC seems to be doing just fine with Ribah based model; why single out Pakistan?

 

[ARMalik]

New SBP chief headed IMF mission in Egypt


ISLAMABAD: With appointment of Dr Reza Baqir as next State Bank of Pakistan (SBP) Governor, the chances for replication of Egyptian model would be brightened under the IMF-sponsored programme on the name of fixing Islamabad’s ailing economy.


It is not yet known whether Reza Baqir will say goodbye to the IMF by getting retirement or not because in case of only getting leave the question of conflict of interest will arise.


The circles close to the government, however, say everything regarding the appointment would be according to country’s laws. They say country needed an uncontroversial man of outstanding capability and credentials to head the central bank, and Dr Reza is the man. There are some interesting correlations in this whole comparison. Dr Reza Baqir was currently serving as IMF’s Resident Chief in Egypt.


Under the three-year IMF programme of Extended Fund Facility (EFF) from 2016 to September 2018 in Egypt, the poverty had gone up from 35 percent to 55 percent. The three-year EFF programme provided to Egypt in November 16 witnessed that the exchange rate under EGP/USD nearly doubled overnight. Consequently, the headline inflation surged to 33 percent in Jul-17 prompting the Egyptian central bank to raise the policy rate to 19.25 percent. Such massive devaluation in Egypt did not help improve its trade deficit as exports slightly increased and went up from $5.26 billion in Sept 2016 to $6.78 in September 2018. Egypt was rescued by its tourism industry as it attracted a lot of tourists because of its historic and religious sites located in the country.


The sources said that former finance minister of Egypt had told Asad Umar, former finance minister of Pakistan, that Islamabad must think 10 times before adopting Egyptian model of IMF programme because it had doubled the poverty, surged inflationary pressures and did not help increase exports despite devaluation Egyptian currency of almost 125 percent against US dollar. When the inflation started receding in Egypt under the IMF programme through targeted measures, the month of July reached when prices of utilities especially gas were hiked due to withdrawal of subsidies under the IMF programme. The former Egyptian officials were of the view that Jordan also entered into the IMF programme and landed into political upheaval after which major changes were brought into the government. Former economic adviser to the Finance Ministry and renowned economist Dr Ashfaque Hassan Khan also termed Egyptian model of the IMF a recipe for disaster for Pakistan’s economy and stated that the poverty and unemployment was bound to go up and growth would be choked.


The government quarters, however, have a different position. They say an IMF programme is always finalised with consent of the country concerned. The success of the programme depends upon the implementation of lender’s condition agreed to by the country receiving the programme. If the country concerned does not implement mutually agreed measures, the lender cannot be held responsible if economic crisis persists, they added. Dr Reza Baqir is currently serving as IMF’s Senior Resident Representative to Egypt. His key responsibilities include helping the authorities implement their economic reforms programme supported by a $12 billion loan from the IMF, maintaining and strengthening good relations between Egypt and the IMF, providing policy advice, and coordinating technical assistance, amongst other areas. Egypt is Dr Reza Baqir’s second overseas country assignment.


During 2005-2008, he was posted in Manila as the IMF’s Resident Representative to the Philippines where he was awarded the Order of Sikatuna, an order of diplomatic merit, by the president of the Philippines. Dr Reza Baqir has served at the IMF for 18 and a half years. His previous experience in the headquarters includes Mission Chief for Bulgaria and Romania (2016-17), Chief of the IMF’s Debt Policy Division (2012-16), Deputy Chief of the IMF’s Emerging Markets Division (2009-11) and other assignments. His other country experience includes Cyprus, Ghana, Greece, Jamaica, Portugal, Thailand and Ukraine amongst others. In addition to country work, Reza Baqir has led analytical and policy work in the IMF on managing capital flows, public debt sustainability, sovereign debt restructuring and vulnerability analysis for emerging markets. Prior to his experience in the IMF, Dr Baqir has two years of experience at the World Bank. Reza Baqir’s research has been published in several leading journals of the economics profession, including the Journal of Political Economy and the Quarterly Journal of Economics. Dr Baqir was a Visiting Scholar at the Massachusetts Institute of Technology during 1999-2000. Reza Baqir holds a PhD in Economics from the University of California at Berkeley and an AB (Magna cum Laude) in Economics from Harvard University.

https://www.thenews.com.pk/print/467126-new-sbp-chief-headed-imf-mission-in-egypt

• Egypt 2016 - IMF Reaches Staff-Level Agreement on a 3-Year US$12 Billion Extended Fund Facility. The Egyptian Pound has since been devalued from 7 to-a-dollar to 17 to-a-dollar

• Egypt GDP falls from $332 billion in 2016 to $235 billion in 2017 under IMF program

• Poverty in Egypt went from 35% to 55% under IMF program

@Wa Muhammada @Mangus Ortus Novem @Baghial @ARMalik

@Reddington Thanks. Only time will tell, but the signs are not looking good. Rothschild once said "Permit me to issue and control the money of a nation, and I care not who makes its laws".

It is shameful that a country of more than 200 Million people cannot find economic masterminds to turn this country around. The country has been literally been handed over to hounds.

There were a few comments basically saying that people do not appreciate the "talents" and "capabilities" of people like Reza. It is a comment based on incomplete picture. The question is not about 'talent' but the question is about the talent being used to destroy a country. It takes a very talented and capable person to wage an economic war on a country.

 

[Indus Pakistan]

If NS did not deliver. This means IK should also not deliver.

Did you judge NS after 9 months in power? If that was the cases he should have been fcuked and chucked on the garbage heap in 1986 into his 9 month term under GEn Zia as CM of Punjab. That is exactly 34 years ago. Not asking for 34 years for IK but can we have few fcukin years?

No?

It takes a very talented and capable person to wage an economic war on a country.

Ishaq "dola" Dar?

 

[Reddington]

How much longer will we accept this accept this corrupt nizam?

@NaqsheYaar can tell us better if he is here......

 

[VCheng]

Great, to the point post that exposes why we are in the mess, a unprecedented mess. I want to see PMLN-N or PPP supporters give a riposte to the points you raised.

What better person than PMIK to lead the nation out of such an unprecedented mess? We need to look forward to where the country is going more than looking back to how we arrived here.

 

[shahbaz baig]

Pakistan bhol jao duniya k naqshay sy ya phir IK ki qiyadat mai 10 saal qurbani delo. Or koe rasta nhi.

 

[waraich66]

Posted similar to the following in another thread.

For all PPP PMLN LOVERS: Pakistan has to return large part of their borrowed foreign debt amounting to 27 billion Dollars in two years time when it becomes due...

27 billion Dollars due in one go.
Kudos Ishaq Dar!!!

But wait...that's in 2 years time...what about now...the unprecedented burden on economy at the moment?

Other than the principle amount borrowed by PPP and PMLN, Just the due interest being paid at the moment is 7 billion daily X 30 X 12 and you can do the math.
Kudos Ishaq Dar!!!

What else can this government do in short term than borrow more to return just the interest? Despite that principle amount largely stands unpaid.
Kudos Ishaq Dar!!!

Here is a short history of what was the hay days of remarkable Ishaq Dar:

In June 2013, the public external debt including foreign exchange liabilities was only $53.4 billion.
The public debt-to-gross domestic product (GDP) ratio was touching 70% by the end of fiscal year 2018 in June. This ratio is far higher than the sustainable levels for any country, let alone Pakistan.
In June 2018, the public external debt stood at $95.1 billion Dollars. By the time PTI took over power, the debt was already hitting $97 billion mark.

Caretaker Government of Pakistan borrowed from China just to hold 2018 Elections

Kudos Ishaq Dar !!! Kudos to PMLN!!!
Let's bring them back!!!

The problem with anti PPP and anti PMLN awaam like myself is that when we criticise PTI for its mismanagement and inexperience (which was expected even before elections), those who have re-elected PPP and PMLN for more than 3 decades to bring Pakistan to its economic knees, that lot starts having a field day with childish idiosyncrasies like "inn say tu corrupt achchay thay"...not by a long shot.

It will be a miracle if Pakistan gets out of this economic quagmire anytime soon, no matter who is in power.

PPP and PMLN leaders are economic terrorists who drowned Pakistan in unprecedented debt. Period.

Pakistan started World Bank loans from Liaquat Ali Khan era , there is good debt and bad debt , if debt is taken for infrastructure development , poverty elevation , schools and health facility and power generation , it will be considered as good debt .
We need to stop the debt utilization for the non productive purposes for example Pakistan has 6th biggest world army but economy size is very small .
We need to reduce our defence budget , increase the GDP by investment in infrastructure education and industry.
PTI have same finance minister as of PPP era , always governments of Pakistan have very small space to play , major players are Armed forces and IMF.

 

[ejaz007]

Did you judge NS after 9 months in power? If that was the cases he should have been fcuked and chucked on the garbage heap in 1986 into his 9 month term under GEn Zia as CM of Punjab. That is exactly 34 years ago. Not asking for 34 years for IK but can we have few fcukin years?

No?

Ishaq "dola" Dar?

No since the idiot IK and his brigade themselves promised all this in 100 days. Remember Murad Saeed's 200 billion coming to Pakistan once IK was selected. Remember Asad Umar's Rs. 46/Liter petrol.

Remember IK promise to commit suicide but not going to IMF.

The list is endless.

We already tried imported prime minister and finance ministers. They do not deliver and create more mess simply because their interests are with the institutions they served or shall serve after leaving the office.

What better person than PMIK to lead the nation out of such an unprecedented mess? We need to look forward to where the country is going more than looking back to how we arrived here.

Tell that to IK who is constantly looking back and blaming others for the mess that has been created. What is done is done and can not be reversed. Stop wasting time.

He should come out with a plan to address the situation. That is what is lacking.

 

[Indus Pakistan]

Remember IK promise to commit suicide but not going to IMF.

In politics this is called electioneering. Even in the home of Westminster style democracy ~ UK, I have oveer the years heard outlandish promises most of which were never delivered. And this is in a mature democracy with high literacy rate.

 

[VCheng]

Tell that to IK who is constantly looking back and blaming others for the mess that has been created. What is done is done and can not be reversed. Stop wasting time.

He should come out with a plan to address the situation. That is what is lacking.

Blaming the previous governments will work only for a period of time before the people start holding him responsible for what happens during the remainder of his term. He will be judged by the results he actually delivers, not by what he claimed to deliver.

In politics this is called electioneering. Even in the home of Westminster style democracy ~ UK, I have oveer the years heard outlandish promises most of which were never delivered. And this is in a mature democracy with high literacy rate.

The electioneering is over now that PMIK is in office. Of course he will never be able to deliver all that promised while electioneering, but what about actual results that are needed for the country on an urgent basis? At least one could expect those from him in office. #1 is of course the economy to be put on a more sustainable track, if not turned around totally.

 

[SIPRA]

The electioneering is over now that PMIK is in office. Of course he will never be able to deliver all that promised while electioneering, but what about actual results that are needed for the country on an urgent basis? At least one could expect those from him in office. #1 is of course the economy to be put on a more sustainable track, if not turned around totally.

One shall not entertain very high expectations from IK, under the prevailing circumstances; since he is an extremely constrained person, in many aspects.

 

[VCheng]

One shall not entertain very high expectations from IK, under the prevailing circumstances; since he is an extremely constrained person, in many aspects.

I understand that clearly, but even then he is the best (and only?) hope Pakistan has at present.

 

[SIPRA]

I understand that clearly, but even then he is the best (and only?) hope Pakistan has at present.

Totally agree with you. You are perfectly right.

 

[Indus Pakistan]

#1 is of course the economy to be put on a more sustainable track, if not turned around totally.

Honestly, I don't expect much improvement in Pakistan's economy. With PMIK. Or no PMIK. The problems are deep and have aggregated in the very nature of DNA of Pak economy. All I expect is some stabilizing and remedial action to begin the change whicxh will probably be in generations time. In the meantime the economy will go on bleeding like the previous cycles.

However where I expect PMIK to make big changes is address the fundamental flaws and weakness in Pakistan. At times Pakistan just feels like Karachi with Lahore as a side dish. This is a country of 210 million people. Vast regions need uplifting. This means education, health and addressing poverty. Once we can get the basic human indicators improved then all regions of the country can take position in the mosaic that is Pakistan. That will lead to a change in political economy and in a generation give some future leader to turn Pakistan into a economic tiger.

 

[VCheng]

However where I expect PMIK to make big changes is address the fundamental flaws and weakness in Pakistan.

That is where it starts. If he can get some steps done at the basic level, it will mean much in the future for health, education and the alleviation of poverty. The rest will follow. He needs to stabilize the economy first of all to have some wiggle room in the resources he needs.