Pakistan goes to beg IMF.

[AZADPAKISTAN2009]

I say don't take loan eat once a day

 

[UmarJustice]

No free lunch this time, IMF tells Pakistan

The visiting IMF mission, headed by Jeffery Franks, on Wednesday communicated to Pakistan in plain words that no free lunch would be offered this time.



In talks with Finance Minister Ishaq Dar, the IMF officials clearly said soft terms for the next bailout package could only be extended after reviewing the country’s economic health and the assurance that plans of the government to stabilise the macro-economic indicators would materialise through a credible mechanism.



“If the IMF is not satisfied, then a bailout package will be offered with strict conditions,” said a senior official who was part of the negotiations with the visiting IMF mission. Pakistan and the IMF here on Wednesday initiated the crucial talks on the ailing economy and discussed the way forward keeping in view the proposed budget of the government.



The Fund has also asked the federal government to include the four provincial governments in the policy level talks with the Fund, as they have become major partners to the economy and major shareholders of the revenue resources.



Under the NFC Award, the provinces will get about Rs1.5 trillion from the Divisible Pool, so they should be a part of the negotiations as not only they could give ownership to any agreement with the Fund but also show economic discipline to achieve the ambitious target of budget deficit of 6.3 percent in 2013-14.



Finance Minister Ishaq Dar led Pakistan’s team and marketed the proposed budget with 2.5 percent cut in the budget deficit to 6.5 percent by reducing the expenditures by 30 percent and tax measures to generate revenues up to Rs2,475 billion.



The officials of the ministry, who remained tight-lipped about the talks, however, said that the IMF had appreciated the government bid to slash down the budget deficit by 2.5 percent in 2013-14 and substantially reduce the subsidies in the power sector. The government officials also said that the Fund also appreciated the government plan to reduce the fiscal deficit up to four percent in the next three years.



However, according to independent sources, the IMF questioned the rationale of 50 percent increase in the federal share up to Rs540 billion in the development budget that stands at Rs1.155 trillion given the fact that the country has no fiscal space.



They also asked from what source the government would finance the fiscal deficit of 6.3 percent, which is on the higher side, and with the increase in salaries the fiscal target would become even more difficult to achieve.



Independent sources said Pakistan would formally ask the Fund in the next 3-4 days for over $4.5 billion loan programme to pay the remaining installments under the loan of $7.5 billion that Pakistan had earlier borrowed. However, officials of the ministry are tight-lipped.



The IMF mission comprising 8-10 officials is visiting Pakistan under the PPM (post-programme monitoring) to assess the ability of Pakistan to pay back the loan. The mission will stay in Pakistan for 10 days and will look into the data the government will share with it about all sectors of the economy. The mission will then report to the Fund’s executive board and in the light of the report, it will initiate talks for another loan programme for Pakistan some time in July next.

No free lunch this time, IMF tells Pakistan - thenews.com.pk

 

[deckingraj]

only 3 percent of pakistani pay tax but they expect world class service.... how government iz managing I m wondring... think the day us will stop giving aids... so best stop terror factory and move up pay taxes you wont need to beg.... BTW some of pakistnai where saying we have china for loans we wont need imf n all now what happened to them....

ummmm...do u know how many people(percentage wise) pay taxes in India??

 

[cloud_9]

ummmm...do u know how many people(percentage wise) pay taxes in India??

Nearly 3% of the population.Only 3.37 Crore out of the 47 Crore (taxable) filled taxes.

In December, India’s finance minister, Palaniappan Chidambaram, said that 2.89 percent of the population (about 36 million people) filed income taxes. (In contrast, in the U.S., about 45 percent of the population pays taxes, which means that, despite India’s much-larger population, more Americans than Indians actually pay taxes.)

How Many People In India Pay Income Tax? Hardly Anyone

 

[Sinnerman108]

Misleading title !

IMF is a bank, it's their business to lend money.

 

[araz]

Misleading title !

IMF is a bank, it's their business to lend money.

Then by htis token and extending your logic, we are beggars therefore it is our right to beg. No.IMF or any MF can never solve pakistans problems unless someone makes really harsh decisionsa at the grass roots and initiates reforms which solve the inherent problems which pakistan faces. Till we do that we shall forever be dependant on this or that MF.
Araz

 

[474474]

Yes, he would ask government to increase education and health budget.


Then Pakistan would never be able to raise taxes. I love the way people perceive economics.

You don't know what you're saying I'm afraid, you should know what raising taxes means in economics
In a boom taxes are raised to reduc spending and hence reduce inflation, but if we do the same now as we suggest the recession will only worsen, leaded to job losses and errthang

 

[BATMAN]

Democracy...... now people will get rich, in both opposition and ruling.

Have fun.. being ruled by legislators elected raping article 52.

 

[Parul]

IMF, govt to bargain over loan conditions

ISLAMABAD: Past performance and an ambitious budget are likely to haunt Pakistan when its newly elected government starts negotiations with the International Monetary Fund (IMF) for a new bailout programme on Wednesday (today).With a looming balance of payments crisis and a burgeoning budget deficit, the bailout package is seen as necessary for bringing the economy back on track.

Finance Minister Ishaq Dar has already stated that Pakistan will negotiate the programme with the IMF but has insisted that an agreement would be on terms of the borrower, not the lender.The IMF team, being led by its Washington-based mission chief for Pakistan Jeffery Franks, is pegged to begin the long haul negotiations expected to last for the next fifteen days and aimed at reaching a broader agreement over the contours of the new programme, reveal finance ministry officials.

If a broader agreement is reached, the IMF’s executive board will consider Pakistan’s request for the programme in August. This will be the 19th such arrangement in the last 65 years, during which repeated failures to deliver on promises has created suspicions about the country’s willingness to deliver on tough adjustments.

According to former secretary finance Abdul Wajid Rana, the total financing gap for the next three years is expected to be $11 billion. Under the bailout programme, Pakistan is seeking a fresh loan amounting to $4.5 billion, in order to finance debt servicing on existing loans.Additional financing needs equalling $6.5 billion are expected to be met by the World Bank, Asian Development Bank and Islamic Development Bank, subject to the signing of the IMF agreement.

The three broad areas likely to decide the fate of the new IMF programme will be: deep fiscal adjustments to reduce the budget deficit, increased revenue generation, and energy sector reforms coupled with a withdrawal of subsidies.

IMF, govt to bargain over loan conditions – The Express Tribune

 

[Sinnerman108]

Then by htis token and extending your logic, we are beggars therefore it is our right to beg. No.IMF or any MF can never solve pakistans problems unless someone makes really harsh decisionsa at the grass roots and initiates reforms which solve the inherent problems which pakistan faces. Till we do that we shall forever be dependant on this or that MF.
Araz

Flawed logic,
Banking is a defined business, begging is not.

What I am saying is that IMF is in the business of giving loans against materials. That is what banks do.
It is upto us not to screw ourselves to the point where we have to go to the bank.

 

[Argus Panoptes]

..............
The three broad areas likely to decide the fate of the new IMF programme will be: deep fiscal adjustments to reduce the budget deficit, increased revenue generation, and energy sector reforms coupled with a withdrawal of subsidies.

IMF, govt to bargain over loan conditions – The Express Tribune

Each one of these three items will be painful for a large majority of the population. Hard times ahead.

 

[Dillinger]

@Secur Cutting subsidies..going to kill some concerned industries..well almost.

 

[SBD-3]

You don't know what you're saying I'm afraid, you should know what raising taxes means in economics
In a boom taxes are raised to reduc spending and hence reduce inflation, but if we do the same now as we suggest the recession will only worsen, leaded to job losses and errthang

What you're saying is in perspective of economic cycle smoothing. But Pakistan is trapped in debt-recession spiral on the contrary where debt swelling out of control, pushes economy into recession.

 

[Mahabali]

I say don't take loan eat once a day

I agree with this as tough times call for tough measures...but the people you are trying to preach already struggling to make ends meet. This internet patriotism is the problem with most of the issues as its a easy way to preach than practice.

When you were building the mother of all weapons the slogan was will eat grass still build it now you are more liberal so have allowed people to eat once a day.

You have got your priorities wrong brother...there is a saying in my part of the world if a squirrel tries to sh**t like a elephant .....you know what will happen. That is the problem that ails you.

 

[BATMAN]

I say don't take loan eat once a day

I have better proposals..

1- Stop subsidies for Indian transit and check smuggling.
2- Privatize PIA, Steel, Railway, Judiciary and police.
3- Liberalize investment in alternate energy.
..........