Pakistan plans seeking $12 billion IMF bailout: UK Financial Times

[Khamlun News Reporter]

https://twitter.com/x/status/1023594591751208961

 

[MBT 3000]

lol who said that the caretaker govt? or Asad umar

 

[Sully3]

In a bid to get a breathing space for Pakistan for completion of ongoing political transition in a smooth manner, China has provided $1.5 to $1.7 billion in shape of official bilateral loan on soft terms and conditions to Islamabad out of total agreed size of $2 billion assistance.

The remaining small amount of this soft loan will be deposited into the State Bank of Pakistan (SBP) very soon, a top official confirmed to The News on Saturday.

However, economic experts believe this bilateral assistance from China cannot become alternative to the IMF program keeping in view the projected financing gap in the range of $26 to $28 billion for the current fiscal year 2018-19.

FT is a couple days late to newer developments

 

[Indus Pakistan]

In a bid to get a breathing space for Pakistan for completion of ongoing political transition in a smooth manner, China has provided $1.5 to $1.7 billion in shape of official bilateral loan on soft terms and conditions to Islamabad out of total agreed size of $2 billion assistance.

The remaining small amount of this soft loan will be deposited into the State Bank of Pakistan (SBP) very soon, a top official confirmed to The News on Saturday.

However, economic experts believe this bilateral assistance from China cannot become alternative to the IMF program keeping in view the projected financing gap in the range of $26 to $28 billion for the current fiscal year 2018-19.

FT is a couple days late to newer developments

Asad Umar already said all options are on the table. Pakistan needs about $15 billion. A billion there or here will not cut it other then covering next few weeks. IMF per se is not a monster option. Sadly in Pakistan IMF has been tarnished by our corrupt elite. It is not IMF that is evil but those who ruled Pakistan and created grounds where we had to go to IMF. The corrupt elite then used IMF as a scapegoat for their own evils.

The real issue with IMF is the deal Pakistan can negotiate. I mean if Pakistan got a good deal then taking out a $15 billion from IMF would be good to get the economy on track and to deliver on the manifesto IK sold. The problem is IMF might impose conditions that eat into or cripple his manifesto but I have faith in IK that his ability to deal with IMF will get him good deal. So this option is not by itself bad. The decisive factor is the deal he cuts.

So let's wait and see.

 

[Samlee]

I Have A Better Idea Oil and Gas,Real Estate,Telecommunication,Retail,Cement,Steel and Food Are The Most Profit Making Sectors In The Country.

Pakistani Companies In These Sectors Should Raise Bonds In Foreign Capital Markets And Raise Capital This Will Substantially Increase Forex Reserves In The Country.

Secondly Pakistan Should Convert All It's Power Plants From Furnace Oil To Coal and Gas.This Will Result In Massive Savings In Forex Reserves

Thirdly Pakistan Should Refinance A Portion Of It's Debt In The Form Of Diaspora Bonds.

Crackdown On Hundi and Hawala Dealers and Rate Differential In Banking Channels Should Be Minimized.This Can Easily Double The Amount of Remittances The Country Receives.

 

[Indus Pakistan]

One look at the public finances besides corruption within government departments the state is bleeding money at -

• PIA
• Pak steel
• Electricity theft
• etc
• etc

All this has to stop. Pakistan cannot afford keeping these white elephants that bleed precious public money in billions of dollars. It has to stop. For instance PIA cost the state nearly $2 billion over the last 5 years. That is more then what the Chinese have bailed us this month.

 

[cloud4000]

I can't believe how many PTI supporters -- especially on PDF -- are claiming that Pakistan will not be going to IMF. That somehow, without explaining how, this will be done. If pressed, some will say better tax collection and returning of looted wealth stashed overseas will help alleviate the problem. Possibly, but these measures will take time to implement and will not do anything to help the short-term problem the new government will face soon as it takes power.

Going to IMF is inevitable for Pakistan.

 

[Indus Pakistan]

I can't believe how many PTI supporters -- especially on PDF -- are claiming that Pakistan will not be going to IMF. That somehow, without explaining how, this will be done. If pressed, some will say better tax collection and returning of looted wealth stashed overseas will help alleviate the problem. Possibly, but these measures will take time to implement and will not do anything to help the short-term problem the new government will face soon as it takes power.

Going to IMF is inevitable for Pakistan.

The reason is simple. For decades our robber barons have been raping the states treasury. And when inevitably it led to near bankruptcy they had to go to IMF. Now they could either say -

1. Hey we raped, stole, destroyed public finances and now have to got to IMF.
2. Or lay all the blame on the evil, bastard IMF. You know 'scapegoat'.

What do you think they did every time. Yeh very easy. They did [1] and shifted all the blame and evil on IMF - you know the bad, evil monster that came in middle of the might and forced us to borrow money with horrible evil conditions. Blah blah. Pakistan being semi-literate country was and is sucker to such "saazish" theories. The evil is not IMF but those who caused us to go to IMF. And he is sat in Adialya jail asking "nikala kuh"?

 

[IceCold]

I can't believe how many PTI supporters -- especially on PDF -- are claiming that Pakistan will not be going to IMF. That somehow, without explaining how, this will be done. If pressed, some will say better tax collection and returning of looted wealth stashed overseas will help alleviate the problem. Possibly, but these measures will take time to implement and will not do anything to help the short-term problem the new government will face soon as it takes power.

Going to IMF is inevitable for Pakistan.

Allow me,
A quick pointers:
1) China agreed to immediately give 2 billions so that the new government gets a breathing space and does not need to run straight away to IMF and get blackmailed by the West specially the US.
2) IDB has given a credit line of 4.5 billion which will give stability to rupee against dollar. Moreover rumours are Saudis have given a green light for more funds probably around 2 billion. This will happen after crown prince comes to Pakistan.
3) FBR who was always short of collecting tax targets received the largest ever in a single day after IK speech.
So 2 billion already in SBP, 4.5 billion credit for oil, 2 billion more expected,all of this when IK hasnt even begun his government, you should understand why PTI supporters believe in not going to IMF.
Now we might go the IMF but not as desperate as some people had anticipated and without desperation one can always negotiate a better deal like Indus pointed out. Rest picture will be clearer once the new government swears in on 11th.

 

[PDFChamp]

Hope it's not true. Financial Times is reporting this. If it is, we have bufoons advising IK. This is worst than the previous two goons because they are talking about $12B. If you can't pay back $5B, how can you payback $12B? Get your house in order first and once you have a path to payback the money, then think about it. Pakistantis get too scared of doom and gloom fast talkers. (Some "officials" are ready to line their pockets. They want to hit IK before he can figure out what's going on. why do I say this: Read "Confessions of an Economic Hit Man" -- https://johnperkins.org/)

Please read the full article here: https://www.ft.com/content/4421a5a8-9176-11e8-b639-7680cedcc421

Pakistan is drawing up plans to seek its largest ever bailout from the International Monetary Fund, with senior finance officials set to present the option to Imran Khan soon after he takes office. Any loan from the IMF, which (some idiot) officials believe is necessary to resolve the country’s escalating foreign reserves crisis, would see the fund impose restrictions on public spending. Such limits would make it difficult for Pakistan’s charismatic new leader to fulfil some of his election promises such as building an “Islamic welfare state”.

 

[RealNapster]

3) FBR who was always short of collecting tax targets received the largest ever in a single day after IK speech

More on this please

 

[PDFChamp]

IMF may or may not be evil. But, there is no question that it requires cuts on welfare spending (education, health, infrastructure...what little Pakistan spends) and is a gift to the oligarchs because it requires privatization of public assets (usually occur at fire sale prices). Just see examples of Argentina, Jordan and Greece. Pak needs to figure out how to discipline the top 1% and collect fair share of their taxes before hitting the little guy. Also, Pak can't be successful if it privatizes everything. Just look at Thatcher's mess in the UK.

If IK complies with IMF, his dream of "Medina" state may not be realized.

 

[Samlee]

I can't believe how many PTI supporters -- especially on PDF -- are claiming that Pakistan will not be going to IMF. That somehow, without explaining how, this will be done. If pressed, some will say better tax collection and returning of looted wealth stashed overseas will help alleviate the problem. Possibly, but these measures will take time to implement and will not do anything to help the short-term problem the new government will face soon as it takes power.

Going to IMF is inevitable for Pakistan.

You Are Right But Read My Post Above.My Proposals Will Take Very Little Time To Implement

 

[PDFChamp]

The reason is simple. For decades our robber barons have been raping the states treasury. And when inevitably it led to near bankruptcy they had to go to IMF. Now they could either say -

1. Hey we raped, stole, destroyed public finances and now have to got to IMF.
2. Or lay all the blame on the evil, bastard IMF. You know 'scapegoat'.

True. Very True. But, it's also the IMF which transferred money to Bhutto's Swiss Bank accounts. (I know from someone who served under him in the 70's. Other's as well, you can bet.)

Per IMF website, our history is TOO LONG with IMF. IMF is like any other bank, they only make money if they can give you more loans.

 

[Skull and Bones]

IMF is not a bad option, it will monitor the flow of fund in all of its stages, and will help put policies to implement some austerity measures to ensure there is no fiscal deficit. Which will be better for Pak in the long run.

All Chinese loans will do is fill up the pocket of some elites, that is why they have demonized IMF to the population.