Pakistan strike deal with IMF

[Peaceful Civilian]

this will lead to massive unemployment and inflation as predicted by many economists

This loan will help us to continue ongoing projects. Otherwise it will create delay , unemployment & no progress.

 

[valkyr_96]

Some research by Arif Habiib


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I wouldn't read to much into this because the opposite of going to IMF is to take the same measure (cutting growth, increasing taxes) without the cash to manage the transition, which would have been much worse and a far severe contraction of the economy.

 

[terry5]

Well I hope I can get my savings back now .
9 million rupees I have being held by bank .

They said soon I get it back

 

[valkyr_96]

Still flabbergasted on why China doesn't just wave its magic wand and give 50 billion to Pakistan. It will remove all the troubles in paksitan and get it out of IMF trap which undoubtedly has an impact on its flagship cpec project.

Why should they? Firstly, it has no impact of the CPEC project which is in effect a road that makes Chinese goods make inroads around the world. Since most of the routes are already developed. The respective governments of OBOR have requested Chinese to invest along the project. If Pakistan faces crunch it is these "investments" that are scaled back. This is CPEC for Pakistan not China. Yes China can pay off Pakistan's cash woes, but it would not change the ailment! and CPEC is not the ailment. Pakistan needs structural reforms in every field. Furthermore, China has converted some previous loans to grants. It has done the same with other countries as well. With the amount of countries now tied to the OBOR project it may be a bit difficult for them to show preferential treatment to one particular party.

 

[ziaulislam]

Why did our rating dropped..we printed notes

The idea/reason behind getting into IMF system even with $1.8 billion/year loan is to use IMF cover to qualify for additional loans from other international lending bodies like world bank, asian development bank etc. and to have some kind of credibility attested by IMF to float dollar/euro bonds to generate more dollars/euros for the reserves. IMF acts like a stamp of attestation for more loans from other sources because IMF will publish the periodic review/progress reports of pakistan's adherence to their conditions during IMF 3 years program.

Once loan matures you usually role over that loan but current loans..it seems its just 600million dollars a year of net loan

Means further devaluation & more inflation.

Besides no control over interests rates ?hmm.

Very tough times ahead for people of Pakistan.

So bad and so sad.

Interests rate and rupee value is officially not controlled by any govt including india unless you are cheating likr Pakistan was