US warns IMF against bailout for Pakistan

[Maarkhoor]

United States' Secretary of State Mike Pompeo has warned that the US would closely be watching whether the International Monetary Fund (IMF) bails out Pakistan — a key player in China's One Belt One Road (OBOR) project, and right now in need of a bailout.

"Make no mistake, we will be watching what the IMF does," Pompeo stated in an interview to CNBC after saying that he would welcome mutually beneficial engagement between the US and Pakistan.

"There's no rationale for IMF tax dollars — and associated with that, American dollars that are part of the IMF funding — to bail out Chinese bondholders or China itself," he added, signifying that Pakistan's new government, which is severely in need of a bailout, might run into further financial troubles after taking oath.

Read: Why Pakistan is back in trouble with balance of payment

All indicators suggest the Pakistan Tehrek-e-Insaf's government — which is likely to take oath next month — will immediately have to approach the IMF for what would be the country's 13th bailout from the fund.

“Exports are down, debt is up, the macro indicators are pretty poor,” says Sehar Tariq with the US Institute of Peace.

According to the Financial Times, senior Pakistani finance officials are drawing up options for Khan to seek an IMF bailout of up to $12 billion. In a Reuters report on Tuesday, however, an IMF spokesperson said : “We have so far not received a request for a fund arrangement from Pakistan and we have not had discussions with the authorities about any possible intentions.”

Op-ed: Next finance minister will face a tough job

The other option may be further borrowing from China.

Through OBOR's flagship project China Pakistan Economic Corridor (CPEC), Pakistan has taken numerous loans from its trading partner China, which economists have warned the country will face difficulty in paying back.

According to a report in Dawn on Monday, China has agreed to pour in some extra foreign exchange on top of the CPEC funding and the rupee rise since the July 25 polls is being linked to this. The size of official inflows is $2 billion. Of this, $1bn has already come into our accounts, top bankers said while confirming media reports.
https://www.dawn.com/news/1424045/us-warns-imf-against-bailout-for-pakistan

 

[Maarkhoor]

@django @Indus Pakistan @Arsalan @Mrc

 

[Samlee]

Good No IMF Means We Can Show The US A Bigger Middle Finger

 

[Maarkhoor]

Good No IMF Means We Can Show The US A Bigger Middle Finger

With rupee touching 1000 against 1 USD?

 

[Arsalan]

That was bound to happen. Remember they said IK is a Taliban sympathizer and thus US was understood to come up with strict measures against him or his government.

But wait, they also said IK is a Israel stooge, that it is US and EU conspiracy to take over Pakistan and that is why they want their man Imran to run the affairs in country. Stupid dumb media!!


On a serious note, yes US will try and put IK and his gov. under pressure from the very start. It is a test of IK and his team, the way they manage to come out of it will really set the tone for next five years and may be, the country's future in general. I see some friendly nations coming up with some soft loans and grants to pull us out of this mess and then hard work, dedication, chasing and bringing back the looted money to be the solution. It wont be easy but why else we elected them? I did because i knew only HE will at least sincerely try to get this done.

 

[BHarwana]

Pakistan is not going to IMF this is 100%.

 

[Maarkhoor]

That was bound to happen. Remember they said IK is a Taliban sympathizer and thus US was understood to come up with strict measures against him or his government.

But wait, they also said IK is a Israel stooge, that it is US and EU conspiracy to take over Pakistan and that is why they want their man Imran to run the affairs in country. Stupid dumb media!!


On a serious note, yes US will try and put IK and his gov. under pressure from the very start. It is a test of IK and his team, the way they manage to come out of it will really set the tone for next five years and may be, the country's future in general. I see some friendly nations coming up with some soft loans and grants to pull us out of this mess and then hard work, dedication, chasing and bringing back the looted money to be the solution. It wont be easy but why else we elected them? I did because i knew only HE will at least sincerely try to get this done.

Bro be realistic I.K is going to form a weak Govt which could be toppled with large opposition, he will spend his time to save his Govt believe me and in that situation he will be not able to do any good even may compromises to have some NROs....My prediction is new Govt will fall with a 1 or 1.5 years max....

Pakistan is not going to IMF this is 100%.

Draft is already prepared, no other choice and have to take 12+ billion bailout package.

 

[Sine Nomine]

Good No IMF Means We Can Show The US A Bigger Middle Finger

And they may show up with a Battle Carrier Group.

 

[BHarwana]

Bro be realistic I.K is going to form a weak Govt which could be toppled with large opposition, he will spend his time to save his Govt believe me and in that situation he will be not able to do any good even may compromises to have some NROs....My prediction is new Govt will fall with a 1 or 1.5 years max....


Draft is already prepared, no other choice and have to take 12+ billion bailout package.

Bhai I am screaming from so many days on pdf that we are not going to IMF.

 

[Taimoor Khan]

The new government has not swear in yet and the yanks have already started to throw their toys out in tantrum.

Upcoming government must look at ways to arm twist America. They can start by charging hefty amounts for American use of our airspace and ports to support their troops/assets in Afghansitan.

 

[Menace2Society]

Sad they are doing all they can to stop a democratic country from progressing.

Their whole narrative towards Pakistan is hypocritical. There is no way to bring them on your side. They made their decision when JFK was killed off and used you like a hired gun during the soviet conflict. They are not well wishers. At the very least let a poor country get a damn loan so they can educate their people towards a better life but instead war mongering,threatening and constant changing of the goal posts. Public humiliation time and time again. This is no ally or a friend to be.

Cut the nato supply line for a months review then up the rate by 400%

Charge US containers an additonal 200% on top

Entrench fully with Taliban and secure western border security

Reject any aid offered and don't be too forward with diplomatic overtures. For god sake don't send your PM over there.

This is a long game they have been playing ever since the fall of Dhaka.

I would advise the Pakistani expats in US to leave and seek a new country to live in this will get messy.

What Pakistan has is democracy and story of courage and ambition which other countries will not ignore, they will trade with you. You can become like vietnam but you must diversify your exports with service based industries and reduce wastage/costs across the board. This can be done. Use Imran's clean image and get investment from well wishers. You create a clean enviornment for business and Pakistani expats will invest millions into Pakistan. We are an industrious bunch and not afraid to overcome adversity for success. This will be a long hard journey but when you get there US will come and beg for a good relationship and thats when you give them a public middle finger.

 

[Trango Towers]

Increase tarrifs on transit for us forces

 

[BHarwana]

5 Pakistani ambassadors to be fired from job soon. Unconfirmed reports.

USA
China
Russia
Saudis
Canada

 

[Samlee]

With rupee touching 1000 against 1 USD?

Rs.1000=$1????Really Are You Smoking Something????????

 

[Maarkhoor]

Bhai I am screaming from so many days on pdf that we are not going to IMF.

You are screaming uselessly, mark my words we will go or take it as we have to go and it is matter they will bailout us or not.
In case they don't then mubrook Pakistan will become Iran, Zimbabwe where people need big bags to buy a coffee and need van to buy television.
First our stock exchange will collapse and with the free fall of rupee our loans suddenly will become so gigantic that we will not able to pay even interest.
We will go bankrupt no other country will invest us, our purchasing power will go nose down and then please forget about fighting with India since we will not able to purchase weapons and ammunition.

Rs.1000=$1????Really Are You Smoking Something????????

Lolss...PDF is full of kids who left school.