The country has been handed over to IMF Dr Kaisar Bengali

[VCheng]

Yes I'm aware but as you well know we never carry out the reforms. We just do enough to get by. This time it may be harder than usual because the US is not happy with us. Let's see how it goes.

When will we realize that it is not the IMF or USA that are as important as our own need to fix out own economy? It is in Pakistan's national interests to make the required structural changes it has agreed upon to carry out.

 

[Abdussamad]

When will we realize that it is not the IMF or USA that are as important as our own need to fix out own economy? It is in Pakistan's national interests to make the required structural changes it has agreed upon to carry out.

I mentioned the US because political pressure from them gets us waivers from the IMF. Without those waivers we may actually have to do what the IMF tells us. Or fudge the figures. That's an old trick our leaders use

Yes the people in charge and the public in general don't care about the economy. I honestly don't know how a country that produces so many commerce graduates can be so disinterested in its economy. The situation is quite horrifying.

 

[VCheng]

I mentioned the US because political pressure from them gets us waivers from the IMF. Without those waivers we may actually have to do what the IMF tells us. Or fudge the figures. That's an old trick our leaders use

Yes the people in charge and the public in general don't care about the economy. I honestly don't know how a country that produces so many commerce graduates can be so disinterested in its economy. The situation is quite horrifying.

USA is not the problem here; who asks for those waivers to being with?

 

[Cmdr Keen]

Lol if you think 6 billion in 3 yrs is "handing over the country to imf"

Wanna guess what you did by borrowing billions from Saudis and especially the chinese?

 

[Proudpakistaniguy]

The most painful IMF programme

The PTI government has managed to get an IMF bailout on terms and conditions not acceptable to some of the members of the Economic Advisory Council (EAC) and even important Finance Ministry officials. The opposition has demanded to bring the agreement before Parliament for discussion. The measures taken by the government before signing the IMF programme for a gradual compliance with the Fund’s demands have already raised the prices of commodities of daily use beyond the reach of the common man. There is resentment in public over the rise in the prices of basic food items, medicines, school fees, travel expenses and house rents.

According to Advisor Finance Hafiz Sheikh Pakistan and IMF have struck a $6 billion deal to be disbursed in 39 months. Pakistan had already accepted IMF demands like a flexible exchange rate, withdrawal of subsidies, containing borrowings from State Bank and re-initiating the privatisation process. IMF then came up with new goal posts like upfront discount rate by at least 2 per cent, further depreciation of rupee against dollar and a huge rise in gas and power rates to retire the debt of the energy sector.

As the IMF programme is implemented it is bound to put the common man under unprecedented economic pressures. The IMF funds would be disbursed in instalments each one handed over after the tasks assigned have been fulfilled.

The PTI has continued to indulge in politicking instead of taking meaningful measures to reduce government expenses. It publicised selling buffalos and old cars instead of closing down unnecessary ministries and amalgamating less crucial departments. The PM nominated a large cabinet to accommodate coalition partners and an equally large number of advisers with ministerial status. He has allotted funds meant for CPEC development projects to MNAs to retain their loyalties. The Punjab CM travels in full protocol when visiting his hometown, wasting millions of rupees in display of pompousness. Similarly, huge funds continue to be committed to non-development activities. The backbreaking economic burden that the IMF has put on the millions will have consequences. There is a likelihood of the programme to be suspended somewhere in the middle because of its hard terms and conditions.

 

[VCheng]

Pakistan had already accepted IMF demands like a flexible exchange rate, withdrawal of subsidies, containing borrowings from State Bank and re-initiating the privatisation process. IMF then came up with new goal posts like upfront discount rate by at least 2 per cent, further depreciation of rupee against dollar and a huge rise in gas and power rates to retire the debt of the energy sector.

Oh bhai, these are NOT IMF "demands". These are the steps the government proposed to meet its commitments to make the structural reforms needed to deal with the basic issues in order to fix the economic situation that it finds itself in, and the IMF accepted them.

 

[pkuser2k12]

https://twitter.com/x/status/1127998063950348288

 

[Hakikat ve Hikmet]

After the financial meltdown in 2000 in Turkey the following happened:

• IMF sent an FM - finance overlord to be precise - who wasn’t accountable to the PM even!!! In one instance Merhum Ejevit couldn’t reach him for a couple of weeks!!!
• Turkey had to borrow 40-60b$ to keep the state machinery working; otherwise, no money to pay the salary of the public employees
• The conditions were so stern that after a “working luncheon” one top economic bureaucrat quipped, “I have forgotten whether I had a lunch or the the lunch had me”!!!!
• Fiscal discipline was brought back to Turkey, and the rest is history....

 

[pkuser2k12]

https://twitter.com/x/status/1127911576177205248

 

[Proudpakistaniguy]

Oh bhai, these are NOT IMF "demands". These are the steps the government proposed to meet its commitments to make the structural reforms needed to deal with the basic issues in order to fix the economic situation that it finds itself in, and the IMF accepted them.

If IMF loans come without any terms and conditions then why our PM was mocking IMF when he was in opposition? Why he was calling these loans as evil practices which has negative impact on common man ( in case of inflation, devaluation of currency, more indirect taxes, increase in gas/petrol/electric prices, unemployment, no subsidy or welfare project etc) ? Why this government was hesitant to go to IMF and took them 9 months to decide ? Why so much negotiation with IMF if had no terms and conditions to settle with IMF ? If IMF had no terms then why ex-employee of IMF is controlling economy of Pakistan right now

Read this

https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/28/IMF-Conditionality

Most countries including Pakistan are repeat borrowers from the IMF which mean IMF money is not fixing their economic crisis or debt problems. Our Governments just use loan money to help them ride out periodic crises but leave main fundamental economic issues unaddressed. Most of the money from IMF will just fill the pocket of ruling political/military elites/bureaucrat and poor will suffer as usual which will make current government losing in next election while next govt (only when in power) will realize that their cash box is empty and will go to apply for the 14th IMF loan so this tunnel of debt trap does not have any exit . Awaam will get nothing but just sweet talk and empty promises. IMF is only concerned with recovery of the lent amount (even at the cost of suffering of common man ) and nothing else

Watch the expert opinions of Economists

Watch this to know about huge irregularities within energy sector

 

[Turingsage]

Oh bhai, these are NOT IMF "demands". These are the steps the government proposed to meet its commitments to make the structural reforms needed to deal with the basic issues in order to fix the economic situation that it finds itself in, and the IMF accepted them.

I am not convinced by this. Critical personnel from SBP and finance dept are being prevented from suggesting a better more careful agreement with the IMF. Pakistan has accepted terms that are at best insensitive and at worst just draconian with no regard to the consequences to Pakistans economy. In fact Pakistan's negotiating team has no ideas of its own has accepted the worst terms IMF can come up with.
IMF now actually runs Pakistan's monetary policy. Other countries in the past who have accepted loans have done so with sensitivity, careful analysis and some give and take. Pakistan is the first country that has accepted the dictated terms with no countervailing ideas or conditions

Finance Ministry’s top official missing from IMF talks

Listen

ISLAMABAD: Some serious questions within the government were raised about the quality of bail-out package being negotiated between Pakistan and the International Monetary Fund (IMF) as a senior SBP official disclosed to The News that a top finance ministry official is missing from the last three days of these talks.

The State Bank official source, who was present in the Pak-IMF meetings, was surprised that why the key finance ministry official who was part of the negotiating team before was missing when the talks are in the final stage. The SBP source said the finance ministry official opted out of these talks when he was told not to argue with the IMF. The finance ministry official, the source said, was fighting hard with the IMF to get the bail-out package with such conditions which are favorable to Pakistan but he was stopped from arguing Islamabad’s case effectively. The source said the quality of Pak-IMF talks was really pathetic, as Islamabad almost agreed to everything that the IMF wished. According to the source, it was a “complete submission” and a total “sell-out” instead of a “bail-out” package. According to another source, Pakistan has agreed to some really tough conditions of the IMF and now the deal awaits the green light from the Fund’s headquarters in Washington. However, an official on condition of anonymity said that Pakistan was not in a position to have its say, adding that economic condition of the country does not allow Islamabad to bargain much. He said the team negotiating on behalf of Pakistan comprises patriotic Pakistanis who will prefer get the best deal in favour of Pakistan. He said the Pakistani negotiators are experts in their fields and they know how to do things in a better way.

According to media reports, Pakistan and the IMF are negotiating agreement on a fresh bailout package of $6.5 billion in the wake of tough conditions of the Fund on account of taxation, upfront hike in discount rate and withdrawal of subsidies in power sector. They were scheduled to conclude parleys on fresh bailout package till May 10 but both sides after hectic consultations convinced the IMF to extend its stay to next two days for making more efforts to striking a staff level agreement. Media reports say the IMF is asking Islamabad to move ahead with additional tax measures of Rs700 to Rs730 billion in upcoming budget through a combination of both withdrawal of different tax exemptions and raising tax rates. It has also been reported that Pakistan has accepted the IMF’s demands of flexible exchange rate regime, withdrawal of subsidies, containing borrowings from the central bank and reinitiating the privatisation programme. It is said the IMF has also reopened the issue of upfront increase in discount rate by at least 2% despite that the real interest rates were already positive by 3.75%. The other key area was the exchange rate, as the IMF model showed at least 20% further devaluation of rupee against the US dollar.


https://www.thenews.com.pk/print/470294-finance-ministry-s-top-official-missing-from-imf-talks

 

[VCheng]

If IMF loans come without any terms and conditions then why our PM was mocking IMF when he was in opposition? Why he was calling these loans as evil practices which has negative impact on common man ( in case of inflation, devaluation of currency, more indirect taxes, increase in gas/petrol/electric prices, unemployment, no subsidy or welfare project etc) ? Why this government was hesitant to go to IMF and took them 9 months to decide ? Why so much negotiation with IMF if had no terms and conditions to settle with IMF ? If IMF had no terms then why ex-employee of IMF is controlling economy of Pakistan right now

Read this

https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/28/IMF-Conditionality

Most countries including Pakistan are repeat borrowers from the IMF which mean IMF money is not fixing their economic crisis or debt problems. Our Governments just use loan money to help them ride out periodic crises but leave main fundamental economic issues unaddressed. Most of the money from IMF will just fill the pocket of ruling political/military elites/bureaucrat and poor will suffer as usual which will make current government losing in next election while next govt (only when in power) will realize that their cash box is empty and will go to apply for the 14th IMF loan so this tunnel of debt trap does not have any exit . Awaam will get nothing but just sweet talk and empty promises. IMF is only concerned with recovery of the lent amount (even at the cost of suffering of common man ) and nothing else

You are missing the entire point.

IMF does not make the demands, but it does expect the government in financial trouble to come up with its plan to correct the structural problems that led to the crisis in the first place. It is up to the government to decide how it plans to carry out the reforms.

IMF only accepts the plan if it is sufficient to correct the problems, that is all, and lists them as the conditionalities that are then monitored for compliance through the agreed upon period of the bailout.

I am not convinced by this. Critical personnel from SBP and finance dept are being prevented from suggesting a better more careful agreement with the IMF. Pakistan has accepted terms that are at best insensitive and at worst just draconian with no regard to the consequences to Pakistans economy. In fact Pakistan's negotiating team has no ideas of its own has accepted the worst terms IMF can come up with.

Please see the above. IMF does not come up with the "worst terms", but rather the government as it plans to deal with the reforms needed to get over the crisis. It is Pakistan's government that has proposed these steps, not the IMF.

 

[bluesky]

I say don’t pay taxes to this state… This state has no moral authority… They rob the people… suck the blood of common people & sell out the wine of that blood… I hardly have any tolerance left in me, I might knock their heads… These Mir Jaffars (Traitors) have handed over the country to IMF…”_ *_Dr KAISER BENGALI*_

https://activevoice.pk/economy/doll...ntil-we-come-out-dr-bangali-calls-for-action/

Dr. Kaiser Bengali has criticized the IMF bailout but he did recommend any other options to bring the economy to stand again on its feet. Criticism does not help, good suggestions do even if they are not readily accepted by the govt authorities.

I think the think tanks and govt bodies should find out the reasons of economic downtrends. Simply speaking the country spends more than it earns through exports, remittance, and taxes. The country has to close the big holes through which the money drains out without giving any economic benefits to the population.

I have an idea what is the biggest hole in Pakistan economy but dare not speak it out because of strong negative reactions from the Pakistani posters here.

 

[khail007]

I don't know exactly but this IMF 'bailout' package for Pakistan is the twelfth one. Every such 'bailout' made more 'cave in' for Pakistan than previous package.
Mr Kaiser Bengali, what happened on previous occasions?

 

[rak_987]

This Kaiser Bengali was part of Peoples Party economic team in 2008 and lobbied on TV and other forums for the worst IMF program in our history where food inflation was doubled.

Imran Khan would be laughing the ones criticising him are all IMF's dogs incl. this Bengali