Pakistan to approach IMF for a bailout, Asad Umar announces

[MultaniGuy]

Pakistan to approach IMF for a bailout, Asad Umar announces

AFP | Dawn.com | Sanaullah KhanUpdated October 08, 2018
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Finance Minister Asad Umar speaks in a video message. — DawnNewsTV

The government has made the "difficult decision" to approach the International Monetary Fund (IMF) for a bailout to address the mounting balance of payments crisis faced by Pakistan, Finance Minister Asad Umar announced on Monday.

In a video message, the minister revealed that Prime Minister Imran Khan had given the go-ahead to open talks with the Fund for a bailout programme after consulting economic experts and stakeholders.

"The prime minister... after consulting everyone decided today that we should open talks with the IMF," Umar said.

Read: Fresh engagement with IMF is important for Pakistan to attain credibility

The negotiations will be aimed at reaching a "stabilisation recovery programme" which can be used to tackle the economic crisis, the minister said.

hinted at approaching the IMF for “bridging loans” during the critical phase the country is passing through, besides exercising options like seeking help from friendly countries to deposit funds in the State Bank to boost reserves.

The government decision to seek a bailout programme comes at a time when the IMF has concluded that the country faces significant economic challenges, with declining growth, high fiscal and current account deficits, and low levels of international reserves. It has found recent policy measures to be in the right direction, but not yet sufficient. It wants decisive policy action and significant external financing to stabilise the economy.

The IMF also warned the new government that growth would likely slow and inflation rise further if it does not act fast.

According to data released last week, State Bank of Pakistan’s reserves suffered one of their sharpest drops, hitting its lowest level in four years following a decline of $627.7 million to $8.4 billion during the week ending September 28 due to external debt servicing.

The delay by the government in announcing its policy direction to tackle the worsening external crisis has perturbed the financial sector, which has been criticising the government’s inaction to deal with the situation.


Not true... They were pretty transparent... You were just focused of the Benz and Cows.

The Benz and Cows crowd.

@BHarwana , so its true we are going to go to IMF.

Your opinions?

Whatever, it may not be bad as some people make it out to be.

 

[El Sidd]

IMF money will come and it will certainly help Pakistan in short term
however as a Pakistani I would like to know how will Government start generating cash from
Tax collection Or various permit sales like it is done in rest of world

• I am 100% ok with Asian Development Bank's 7 Billion Dollar Announcement
• I can also digest the IMF , Loan program (3-5 Billion Dollar) Announcement

I am just interested in the Policy for Aggressive Tax Collection

• 15% Sales Tax ?
• Road Toll Charges across 15 cities
• Permit for Small Shops
• Cell Phone recharge Government tax

I will annoint you Pakistani karna if you keep this up.

Stop thinking of new ideas to mess People up

 

[Nilgiri]

I will annoint you Pakistani karna if you keep this up.

Stop thinking of new ideas to mess People up

Is karna still posting here lol? Havent seen him in a while.

 

[xyxmt]

@BHarwana, you are right. It is not certain we will go to IMF.

I have read the news. This is what it says.

Pakistan may go to IMF but will seek other options first: PM

Mubasher Bukhari
3 MIN READ


LAHORE, Pakistan (Reuters) - Prime Minister Imran Khan said on Sunday that Pakistan might need to return to the International Monetary Fund to address its mounting balance of payments crisis but would seek funding from friendly countries first.


FILE PHOTO: Cricket star-turned-politician Imran Khan, chairman of Pakistan Tehreek-e-Insaf (PTI), speaks to members of media after casting his vote at a polling station during the general election in Islamabad, Pakistan, July 25, 2018. REUTERS/Athit Perawongmetha/File Photo
Khan, who took office in August, blamed Pakistan’s economic woes on the previous government and repeated a promise to recover billions of dollars he says corrupt officials have stashed abroad.

He has been reluctant to ask the IMF for emergency loans that would be the country’s second bailout in five years.

But foreign reserves dropped by $627 million in late September to $8.4 billion, barely enough to cover sovereign debt payments due through the end of the year. The weekly fall was the sharpest in years.


“We may go to IMF for loan to handle the country’s financial issues,” Khan told reporters. “But, first we will try to get assistance from other countries as we have requested three countries to deposit money in Pakistan’s State Bank that would help boost national reserves.”

He did not name the countries or provide any details of the requests.

The IMF concluded a consultative visit last week with a warning that Pakistan needed to quickly secure “significant external financing” to stave off a crisis, though it did not suggest who could supply the money.

Any IMF bailout would likely include conditions to curb government spending, threatening Khan’s campaign promise to build an Islamic welfare state.

Finance Minister Asad Umar has said foreign reserves need to be boosted by at least $8 billion, but since the July election, none of Pakistan’s allies including China and Saudi Arabia have offered emergency assistance despite high-level visits of officials from both nations.


Khan blamed the previous government for the economic situation.

“Pakistan is suffering huge internal and external debt ... caused by corruption of the former rulers,” he said.

Pakistan’s anti-corruption agency arrested opposition leader Shehbaz Sharif on Friday on charges he took bribes to improperly award a low-cost housing contract while he was governor of Punjab province.

Sharif is the brother of ex-Prime Minister Nawaz Sharif, who was removed by the Supreme Court last year and in June was sentenced to 10 years in prison by an anti-corruption court.

Both Sharifs deny wrongdoing, calling the cases politically motivated.


Commenting on Shehbaz Sharif’s jailing, Khan said on Sunday: “He should have been arrested months ago”.
https://www.reuters.com/article/us-...ill-seek-other-options-first-pm-idUSKCN1MH0TS

@xyxmt @Taimur Khurram @war&peace @Indus Pakistan @Horus @waz @The Eagle your views?

Preparing before Maalish

 

[El Sidd]

Is karna still posting here lol? Havent seen him in a while.

Shubh shubh bol bari mushkil se jaan chooti hai pagle

 

[AZADPAKISTAN2009]

Also from Debt perspective we don't even show up on radar

1. United States – Total debt: $18,286,510,000,000
2. United Kingdom – Total debt: $7,499,400,000,000
3. France – Total debt: $5,250,608,000,000
4. Germany – Total debt: $5,084,360,000,000
5. Netherlands – Total debt: $4,124,640,000,000
6. Luxembourg – Total debt: $3,900,665,000,000
7. Japan (Overall) – Total debt: $3,408,980,000,000
8. Italy- Total debt: $ 2,285,740,000,000
9. Ireland -Total debt: $2,236,430,000,000
10. Spain – Total debt: $2,036,560,000,000
11. Canada – Total debt: $1,791,870,000,000
12. Switzerland – Total debt: $1,699,690,000,000
13. Australia – Total debt: $1,563,330,000,000
14. China – Total debt: $1,437,800,000,000
15. China (Hong Kong Specifically) – Total debt: $1,416,010,000,000
16. Singapore – Total debt: $1,300,310,000,000
17. Belgium – Total debt: $1,194,235,000,000
18. Sweden – Total debt: $938,692,000,000
19. Austria – Total debt: $629,050,000,000
20. Norway – Total debt: $623,223,000,000


What is our debt ? Pakistan : 80,000,000,000 (Peanuts) 230 PERCENT less debt then USA

• Where will Pakistan stand after getting Asian Development Fund Loan (7 Billion Dollar)?
• Where will Pakistan stand after getting IMF economic relief Fund (5 Billion Dollar) ?

Answer: Pakistan still will not even register on the debt chart

Norway's debt 623 Billion ~ Pakistan Debt would be still 90-95 Billion range only

 

[shah_123]

Khan sahab's take:

https://twitter.com/x/status/524110990947131392

 

[pragmatic_dude]

Also from Debt perspective we don't even show up on radar

1. United States – Total debt: $18,286,510,000,000
2. United Kingdom – Total debt: $7,499,400,000,000
3. France – Total debt: $5,250,608,000,000
4. Germany – Total debt: $5,084,360,000,000
5. Netherlands – Total debt: $4,124,640,000,000
6. Luxembourg – Total debt: $3,900,665,000,000
7. Japan (Overall) – Total debt: $3,408,980,000,000
8. Italy- Total debt: $ 2,285,740,000,000
9. Ireland -Total debt: $2,236,430,000,000
10. Spain – Total debt: $2,036,560,000,000
11. Canada – Total debt: $1,791,870,000,000
12. Switzerland – Total debt: $1,699,690,000,000
13. Australia – Total debt: $1,563,330,000,000
14. China – Total debt: $1,437,800,000,000
15. China (Hong Kong Specifically) – Total debt: $1,416,010,000,000
16. Singapore – Total debt: $1,300,310,000,000
17. Belgium – Total debt: $1,194,235,000,000
18. Sweden – Total debt: $938,692,000,000
19. Austria – Total debt: $629,050,000,000
20. Norway – Total debt: $623,223,000,000


What is our debt ? 80,000,000,000 (Penuts)

Clearly, again a lack of understanding of even basic economics. Debt as percentage of G.D.P is looked at universally.
Even that debt should be further broken down into into internal, external debt to understand debt strain on economy.

 

[RIP Pak LAW]

N wallo ko copy past he kerna hai bus ,,,,,,,,,,,, that will do the job...…

Woh tu karein gey ab. Asad Umer, IK should brace themselves for a major opposition shit storm in media and parliament. Those tweets of Asad Umer is a slap on his own face. Opposition kerna bohut assaan hota hai magur power mein ana whole different ball game. Although what Asad is doing now is perfectly makes sense but he has to eat lots of his own shitty words. However Imran Khan govt is rightly reminding opposition that we are going to IMF because of you and this narrative should be aggressively told.

 

[shah_123]

https://twitter.com/x/status/522070685879767040

 

[El Sidd]

https://twitter.com/x/status/522070685879767040

I totally agree

They have the Vision for a stable Pakistan. A thriving Pakistan. A new Pakistan

 

[AZADPAKISTAN2009]

I would get worried about debt when we show up on Top 20 countries with debt till then , we continue with our economic reform program

Real Question is

1- Zardari Took IMF loan did he manage to fix the Tax collection issue ? No
2- Nawaz Sharif , Took IMF loan did he manage to fix the Tax Collection issue ? No
3- Did Benazir Bhutto , Took 6 Loans she managed to fix the Tax Collection issue ? No
4- Did a Young Nawaz sharif managed to fix the tax collection issue ? No

Because the core issue was never fixed i.e Tax collection the issue remained
Nawaz sharif collecting a Massive 6.6 Billion Loan and then 100 Textile Mills in Punjab were closed ????


September 04, 2013 -- IMF Survey : Pakistan Gets $6.6 Billion Loan from IMF
The IMF's Executive Board has approved today a $6.6 billion loan for Pakistan to support its program to stabilize the economy and boost growth while expanding its social safety net to protect the poor.

September 02, 2010 -- IMF Survey: IMF to Provide $450 Million in Flood Aid to Pakistan
The IMF announced it would provide around $450 million in new emergency financing to Pakistan to help the country cope with the economic impact of this summer’s massive floods, which have affected about one-fifth of Pakistan’s land mass and left millions homeless.


August 07, 2009 -- IMF Survey: IMF to Lend Pakistan $3.2 Billion More to Support Social Costs, Build Reserves
The IMF’s Executive Board agrees to increase lending to Pakistan by an extra $3.2 billion to fund priority spending and help the government provide assistance to nearly three million people displaced by military operations and a difficult security situation.

November 15, 2008 -- IMF Survey: IMF Outlines $7.6 Billion Loan for Pakistan
The IMF says it has reached an initial agreement with Pakistan on the key elements of an economic program supported by an $7.6 billion loan to meet the country's serious balance of payments difficulties.


Almost six loan arrangements were made during the regime of Benazir Bhutto including standby arrangement, Structural Adjustment Programs (SAP), Poverty reduction and Growth Facility (PRGF) and Extended SAP.

Two IMF loan arrangements were made during Nawaz Sharif regime and two standby agreement and PRGF under Musharraf regime to stabilize the economy. It is important to note that in the tenure of last two decades, on average almost 44% of the total lending amount has been drawn from the original 100% agreed upon lending amount because of the failure of the government to act upon the strict measures determined by IMF. For the first time in the year 2000, this tradition was broken in Musharraf regime when Musharraf’s government successfully implemented the conditions proposed by IMF and successfully drew the whole lending amount of $1.3 billion

 

[shah_123]

https://twitter.com/x/status/859036563191115776

https://twitter.com/x/status/653962486744530944

https://twitter.com/x/status/861260102900121600

 

[CHACHA"G"]

Criticizing PTi's stupidity doesn't make one N wala --- even if I am born 100 times, I will never ever support N walas.

I mean the parliyament N …..

Woh tu karein gey ab. Asad Umer, IK should brace themselves for a major opposition shit storm in media and parliament. Those tweets of Asad Umer is a slap on his own face. Opposition kerna bohut assaan hota hai magur power mein ana who different ball game. Although what Asad is doing now is perfectly makes sense but he has to eat lots of his own shitty words. However Imran Khan govt is rightly reminding opposition that we are going to IMF because of you and this narrative should be aggressively told.

they are only good at selling cows , bufs and some cars

 

[El Sidd]

https://twitter.com/x/status/859036563191115776

https://twitter.com/x/status/653962486744530944

https://twitter.com/x/status/861260102900121600

They feel my pain. They speak my Voice.