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

[maximuswarrior]

Dude,its not fake ,it's a financial times article ...
https://www.ft.com/content/4421a5a8-9176-11e8-b639-7680cedcc421

Who says that FT gets to decide what Pakistan will do?

FT can speculate at most.

PS. Where are your fvcking flags? Reveal yourself.

 

[Persian Gulf 1906]

PS. Where are your fvcking flags? Reveal yourself.

Why are you so angry?

 

[Hiraa]

For now China and KSA are bailing them out.

 

[maximuswarrior]

Why are you so angry?

Because this is BS news which has been posted a hundred times today.

Secondly the OP is a scumbag. A little fake Jew. Everyone knows who he really is.

 

[Super Falcon]

Why pak not yake loan from turkey rather than these jews

 

[GHALIB]

For now China and KSA are bailing them out.

let china and saudi arabia bail out pakistan.

 

[Indus Pakistan]

Pakistan election: Imran Khan looks at plan for $12bn IMF bailout
Haroon Janjua, Islamabad


July 31 2018, 12:01am, The Times

• Global politics
• Economics
• Asia
• Politics

Imran Khan’s party is 22 seats short of an overall majorityAAMIR QURESHI/GETTY IMAGES
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Imran Khan, Pakistan’s newly-elected prime minister, is set to approve the country’s largest bailout from the International Monetary Fund.

Financial officials will brief Mr Khan on seeking $12 billion of support soon after he takes office.

Mr Khan, the cricketer turned politician, is negotiating with smaller parties to form a coalition government. His Pakistan Tehreek-e-Insaf (PTI) party has 115 seats, 22 short of a majority.

A source in the finance ministry said: “Pakistan desperately needs financial help and at the moment an IMF bailout is the possible option.” In May, Mr Khan hinted that he would approach the IMF for loans if he won power.

The country’s foreign reserves of $9 billion are too low to cover imports for the coming months. Pakistan’s exports are declining while rising oil prices make imports more expensive.

Experts say that approaching the IMF, which is based in Washington, is a difficult choice for the PTI and one which would hurt Mr Khan’s political reputation.

During the election campaign, he made promises to spend on development and social safety nets which will be tough to fulfil in the greater financial crisis the country is facing.

Sakib Sherani, a former adviser to the finance ministry, said: “The new government will have to take a number of steps to contain the pressure on the balance of payments.”

Pakistan would need to approach the IMF with a well-thought out programme which would “complement new financing with initiating comprehensive economic reform”, he added.

 

[denel]

First thing I would do is to put very high tariffs on import of non necessary good and promote internal industry replacement. At least money remains within the country. This includes any industry where money is remitted outside such as coca-cola - Sometimes difficult decisions are needed.

Promote local and you build an entire country.

 

[Skull and Bones]

I thought he is not going to the IMF? @BHarwana

If IMF bails out Pakistan, then PKR will fall below 150, possibly reaching 180 by year end. Time to buy dollars and gold to safe guard against inflation.

 

[Hiraa]

Cut a deal with Nawaz Shariff and Maryam Nawaz, let them go on two conditions that they bring ALL of the looted money back and seize all their properties in pakistan. Second condition,revoke their citizenship so they can never enter our politics ever again.

Nawaz and Maryam being in jail isn’t doing anything but wasting time. We need that looted money back in our country.

 

[Skull and Bones]

First thing I would do is to put very high tariffs on import of non necessary good and promote internal industry replacement. At least money remains within the country. This includes any industry where money is remitted outside such as coca-cola - Sometimes difficult decisions are needed.

Promote local and you build an entire country.

Limiting operation of foreign entities within a country may call for a similar reciprocation outside, as they can impose higher duties on Pakistani exports.

 

[BHarwana]

I thought he is not going to the IMF? @BHarwana

If IMF bails out Pakistan, then PKR will fall below 150, possibly reaching 180 by year end. Time to buy dollars and gold to safe guard against inflation.

Hehe it says plans and source is not it self confident in this news. Lol and if he goes to IMF dollar will fall more. What economics do you people study lol. If dollar supply in country will increase the sucking dollar will go down noob. I am tired of half educated Indian economists. Man give me a break.

 

[war&peace]

 

[BRAVO_]

pakistan has been rescued again by its allies through followings initiatives

IDB activates $4.5b credit facility for Pakistan’s oil imports
https://tribune.com.pk/story/1768572/2-idb-activates-4-5b-credit-facility-pakistans-oil-imports/

China agrees to give $2b loan to Pakistan
https://tribune.com.pk/story/1767965/1-china-agrees-give-2b-loan-pakistan/

Saudi Arabia comes to Pakistan’s rescue with $1billion assistance
it is expected that the new government of Pakistan Tehreek-e-Insaf (PTI) may get assistance of around $2 billion from the kingdom.
https://en.dailypakistan.com.pk/headline/saudi-arabia-comes-to-pakistans-rescue-with-1billion-assistance/
so the new govt would have a breathing space

 

[Nilgiri]

First thing I would do is to put very high tariffs on import of non necessary good and promote internal industry replacement. At least money remains within the country. This includes any industry where money is remitted outside such as coca-cola - Sometimes difficult decisions are needed.

Promote local and you build an entire country.

Frankly Pakistan needs to sit down and see what its labour and short term investment trends are to see what it can actually export competitively and sustainably.

Import substitution that you are suggesting is very slippery slope given the opportunity costs of the labour and investment that would be engaged in an insulated way from the free market (that breed inefficiencies over time).

Pakistan needs to seek to export more (with least amount of investment and maximum amount of productivity) rather than import less....because even high value imports can often be productive (i.e early in the economic chain) and might not be price inelastic as required to raise revenues and/or create the buffers needed for local production investment.

Lol and if he goes to IMF dollar will fall more. What economics do you people study lol. If dollar supply in country will increase the sucking dollar will go down noob. I am tired of half educated Indian economists. Man give me a break.

There may be an effect like you say short term (impulse of dollar supply and PKR demand) dependent on the deficit ramp (i.e what scale I.K prioritises), but you have to remember the 12 billion is not injected into the money supply immediately all at once, rather it is a base collateral to help finance Pakistan's precarious balance of payments situation.

The long term situation will depend on whether that improves (i.e will the sparks and kindling help to create a sustainable campfire), because ceterus paribus, a loan has servicing requirements and thus PKR depreciation pressure.

@Chak Bamu @Jungibaaz @Major Sam @farhan_9909