Pakistan may not go for IMF bailout package:

[BHarwana]

People will start again talking about Pakistan going to IMF on January 5th my prediction and then again we will not go.

 

[RIP Pak LAW]

We will play smart and will give a perception that we ain't going for IMF, which may bring lighter conditions by IMF in the next meeting in Jan. I think we will go to IMF but with the terms which will be suitable for us and yeah the loan amount will be considerably lesser perhaps may be around $5 or 6 billions as compared to $12 billions before Saudi package.

After Saudi/Chinese and UAE packages, we are in a position to negotiate hard with IMF and the process may take 3-4 months to finalize the final deal.

People will start again talking about Pakistan going to IMF on January 5th my prediction and then again we will not go.

There is no harm in going with IMF provided the terms and conditions are not so strict for us to bear.

 

[Yogijaat]

Pakistan finds it hard to make public the conditions tabled by IMF

Rupee had been devalued, power tariffs have already been increased

Only thing left is CPEC agreement details !!!



Shouldn't Plan B have been devised before kicking IMF out ?

If that is made public gullible citizen will know which institution owes most loan in their country which somehow Pakistani govt believe is not in the interest of their citizen.

 

[Abdussamad]

They will go to the IMF. There is no other option.

BTW rupee has not been devalued sufficiently. Our trade deficit is still very large. IMF wants the rupee to be floated. They expect it to hit 150 at least.

 

[Pan-Islamic-Pakistan]

US is so agitated they are trying to create a spectacle about Mumbai attackers bounty.

Pakistan is on the right track this means.

US and India are very desperate as Sidhu chooses his suit and tie for his Pakistan visit.

I’m elated to hear about the crackdown on TLP. Alhamdulilah very strong governing by PTI.

 

[nahtanbob]

its simply huge adjustment that is needed..we talking about over 3trillion rupees deficit...
We have 1200 billion rupees of monetary policy (note printing ) 1450 billion rupees of eneegu deficit and atleast 1.6(500billion rupees) of gdp adjustment to brig fiscal deficit from 6.6 to 4.9

So Pakistan needs tax revamp and foreign investment to counter the lost of govt funding
It needs atleast additional trillion rupees of tax measures..

IMF is thus demanding govt to get to 47000 billion rupees but govt cant get there and want 43000 billion as target..

So IMF wants 20% general sales tax and huge surcharges to recover power losses as soon as possible

Basically its asking to zero development till all debts are paid

IMO..basic issue is tax revamp..if FBR fails asad umar fails and IK fails


Yeah you can now that we got not only a 12b pacakage from saudis but also a sudden 25% drop in oil prices

the fall in oil prices has postponed the day of reckoning

 

[Kompromat]

Good

 

[VCheng]

Economic Coordination Committee have on Sunday voted against approaching International Monetary Fund (IMF) for bailout package.

This is not a simple decision. Going to the IMF will have its pros and cons, and not going to IMF will impose a different set. It is up to the government to decide which set of pros and cons it wishes to deal with. Either way, the economic situation has to be dealt with effectively, not just for this year but for the years in the remainder of the government's term.

 

[RoadRunner401]

Approach KSA for investment opportunities.

"Insanity is doing the same thing over and over again and expecting different results.".

 

[Laozi]

@Indus Pakistan I agree with your assessment and possible turn around of economy under IK

But Going to IMF will not be needed if Pakistan can control its CAD. International players are very shrewd and would invest heavily in Pakistan once they believe that the economic turnaround has been achieved without going to IMF

However IMF is needed to secure international confidence. It's like getting a health certification so I expect Pakistan will get a IMF deal at some point but very much on it's terms.

 

[nahtanbob]

It will depend upon IMF demands, oil prices and what we hear from UAE. In long run it will depend how much tax revamp , fiscal adjustment and CAD (export/remittance ) are done

Whole forum didnt had inside info on saudi as you had. since when has saudi ever helped us this much..its shocking that they agreed for such big bail out package

Than who knew trump will create an artificial glut in oil prices by lying about iran sanctions

is CAD acronym for current account deficit ?

 

[Abdussamad]

But Going to IMF will not be needed if Pakistan can control its CAD. International players are very shrewd and would invest heavily in Pakistan once they believe that the economic turnaround has been achieved without going to IMF

LOL no one is going to invest in Pakistan. That's a friggin pipe dream. First before even thinking about investing investors will consider the risk to their capital from such basic things as law and order, property rights and political risk aka consistent policies of the government in power. There is no law and order, property rights are "flexible" and there is considerable political risk as well.

Pakistan needs to first stabilize it's economy and that will take a good 2-3 years. After that it needs to focus of the above things + education and health of the population. Maybe then foreigners (and locals) will invest in good enough numbers that we don't have to go to the IMF every 5-6 years.

 

[nahtanbob]

We will play smart and will give a perception that we ain't going for IMF, which may bring lighter conditions by IMF in the next meeting in Jan. I think we will go to IMF but with the terms which will be suitable for us and yeah the loan amount will be considerably lesser perhaps may be around $5 or 6 billions as compared to $12 billions before Saudi package.

After Saudi/Chinese and UAE packages, we are in a position to negotiate hard with IMF and the process may take 3-4 months to finalize the final deal.



There is no harm in going with IMF provided the terms and conditions are not so strict for us to bear.

imf is in no situation where they have to loan the money

 

[RIP Pak LAW]

imf is in no situation where they have to loan the money

Dude thats their business model. The agency is to loan money to countries like Pakistan and earn from there.If they start putting serious conditions, than countries will stop lending money from them thus making them redundant. Lending money to struggling economies is what they all do and make money of it. Talk sense.

 

[nahtanbob]

Dude thats their business model. The agency is to loan money to countries like Pakistan and earn from there.If they start putting serious conditions, than countries will stop lending money from them thus making them redundant. Lending money to struggling economies is what they all do and make money of it. Talk sense.

there are enough problem economies to go around