Pakistan seeks $1.4 billion IMF loan to counter coronavirus

[ShaikhKamal]

https://nationalpost.com/pmn/health...oan-to-counter-coronavirus-government-adviser

Pakistan seeks $1.4 billion IMF loan to counter coronavirus - government adviser


Reuters

March 25, 2020
9:44 AM EDT

ISLAMABAD — Pakistan is seeking another $1.4 billion loan from the International Monetary Fund (IMF) to help it deal with the economic slowdown from the coronavirus, government finance adviser Abdul Hafeez Shaikh said on Wednesday .

Pakistan will also be seeking more suport from World Bank and Asian Development Bank, Sheikh added.

“This 1.4 billion we are asking will be a low cost fast disbursing loan,” he told a news conference in Islamabad.

The IMF agreed to a $6 billion financial aid program for Pakistan last year. (Reporting by Asif Shahzad; Editing by Andrew Heavens)

 

[JafarQureshi]

Isn't 1.4 billion too low?

 

[Kaniska]

Will it not burden further your economy?

 

[khansaheeb]

Will it not burden further your economy?

We are a don't delay loan today economy under IK. He seems to be using any excuse to borrow money, maybe one of his advisors gets kick backs.

 

[Kaniska]

We are a don't delay loan today economy under IK. He seems to be using any excuse to borrow money, maybe one of his advisors gets kick backs.

I hope this entire Corona mess gets sorted out ....Rich nations have money to bail themselves out...India/Pakistan kind of nation are always worst sufferer of this kind of situation due to our population and economy..

 

[Avatar]

Here IK needs to keep requesting for money on international stage every few months to keep the state in basic functioning order, and our fanboys are talking about annexing parts of India to solve impending water crisis.

 

[That Guy]

We are a don't delay loan today economy under IK. He seems to be using any excuse to borrow money, maybe one of his advisors gets kick backs.

These loans are being forced upon Pakistan, not by IK, but by Pakistan's previous governments, who borrowed tens of billionss of dollars, that Pakistan has no way to pay back, other than to get more loans.

That's why circular debt has been a huge problem since 2009.

Neither the PPP, nor the PMLN increased government revenue, and instead relied heavily upon loans to fund their vanity projects. PTI is trying to increase revenue, but people and interest groups are pushing back against PTI.

Pakistan has the potential to be one of the richest nations in the world.

 

[El Sidd]

Not interested.

 

[Moonlight]

We are a don't delay loan today economy under IK. He seems to be using any excuse to borrow money, maybe one of his advisors gets kick backs.

This isn’t easy to handle with this outbreak of corona. So Lord Nawaz Sharif in last 30 years couldn’t even obtain a good number of ventilators and you still think Imran Khan is
looking for excuses to borrow the money?

 

[Yaseen1]

there are reports that cargo plane with 100 ton of medical equipment related to corona virus flew from karachi to european country of czech republic containing corona test kits made within Pakistan secretly at times when we need such equipment and medicines.I think whole govt system is corrupt and are only interested in making money from people misery with no concern of their health in reality,all such loans will be subjected to corruption with no positive outcome so no need to take them and instead rely on own sources no matter we have to see more deaths due to corona,death is better than such slavery

 

[khansaheeb]

These loans are being forced upon Pakistan, not by IK, but by Pakistan's previous governments, who borrowed tens of thousands of dollars, that Pakistan has no way to pay back, other than to get more loans.

That's why circular debt has been a huge problem since 2009.

Neither the PPP, nor the PMLN increased government revenue, and instead relied heavily upon loans to fund their vanity projects. PTI is trying to increase revenue, but people and interest groups are pushing back against PTI.

Pakistan has the potential to be one of the richest nations in the world.

How? -"Pakistan has the potential to be one of the richest nations in the world."

 

[That Guy]

How? -"Pakistan has the potential to be one of the richest nations in the world."

There are a number of things holding Pakistan back.

1) corruption

2) weak and incompetent financial institutions

3) lack of labor reforms

4) lack of tax reforms

5) People and merchants not paying their taxes

6) importing too much, and exporting too little. For a developing nation, it should be the other way around (you can thank NS for this blunder)

7) lack of investment into human development and resources.

8) war on the western border, and threats from the eastern border.

9) Too much political instability caused by smaller parties, like juif, ptm, tly/tlp...etc, all of whom are irrelevant, and given far too much importance than their worth.

10) no political will to do the right thing. Sometimes, doing the right thing is probably turn you into the villain in the eyes of the people, but it must be done.

These are just a FEW problems that Pakistan needs to resolve. There are others, like loan taking at high interest, or reliance on one or two sources of investment (China and the US).

Pakistan needs a politician that is willing to be the man whom everyone will spit on and curse, just because he did the right thing. The right actions will be painful for Pakistan, and the few right steps taken by IK and his government have been painful, but in the end, Pakistan will be stronger and FAR better off.

 

[khansaheeb]

-"These are just a FEW problems that Pakistan needs to resolve"
Not problems but an insurmountable mountains.

 

[That Guy]

-"These are just a FEW problems that Pakistan needs to resolve"
Not problems but an insurmountable mountains.

No such thing as insurmountable, it just take political will to do the right thing, and sooner or later, someone will come along and do that right thing.

 

[JafarQureshi]

-"These are just a FEW problems that Pakistan needs to resolve"
Not problems but an insurmountable mountains.

Nothing is impossible. Just wait and watch how PMIK will resolve all these problems.