US warns IMF against bailout for Pakistan

[That Guy]

This is a pressure tactic, nothing more. The US won't risk Pakistan's economic collapse.

Besides, unlike the previous government, IK actually will retaliate if the US pulls a stupid stunt like they did with the F-16s, and the reimbursements.

 

[Pan-Islamic-Pakistan]

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.

Great post. Agree 100%. First day in office and Trump went after Pakistan. This is a generational battle, not its being played in the open.

 

[SQ8]

This is a pressure tactic, nothing more. The US won't risk Pakistan's economic collapse.

Besides, unlike the previous government, IK actually will retaliate if the US pulls a stupid stunt like they did with the F-16s, and the reimbursements.

They want CPEC to not use US money. Plain and simple- it’s a larger statement to us coddling China more.
It is a pointless bluff since at this time they need us more than we need them and more importantly there is no leverage they have militarily or economically since they’ve already pissed off most of Europe.

 

[Bilal Khan (Quwa)]

This is a pressure tactic, nothing more. The US won't risk Pakistan's economic collapse.

Besides, unlike the previous government, IK actually will retaliate if the US pulls a stupid stunt like they did with the F-16s, and the reimbursements.

They want CPEC to not use US money. Plain and simple- it’s a larger statement to us coddling China more.
It is a pointless bluff since at this time they need us more than we need them and more importantly there is no leverage they have militarily or economically since they’ve already pissed off most of Europe.

There are 2 issues at play: the BoP crisis and the mounting debt. In theory, a country unable to pay its bills (BoP) for imports shouldn't be allowed to import any further, but the IMF's bailouts exist to prevent that no matter the cost of those involved (usually, the one in debt suffers more). Why? Because a lot of businesses outside have a lot of interest in getting their orders, and I imagine at least some US companies are involved.

I imagine the IMF bail-out won't be as big as $12 bn, more in line with what Pakistan owes the US (and maybe Western Europe), but the Chinese will need to figure something out on their end in order sustain CPEC.

That or we heavily revise CPEC such that we induce more of its expenditure on local labour, material and services instead of importing from China.

The Chinese would have to understand that they'll get their long-term returns via the interest on the loans (infrastructure) and ROI on the IPPs, having to force Pakistan into using Chinese production resources is just excessive and doesn't get meet either side's long-term interests.

 

[royalharris]

Why?
Theoretically Pakistan is still a us ally

More adoring the west’s Might and so called democracy

It is inconceivable two allies hate each other

 

[YeBeWarned]

US is doing what it does best .. I am not surprised , I am waiting with my popcorn as Trump fcuk up with every country America once called an Ally

 

[airmarshal]

This is a very undiplomatic statement.

If any of the corrupt leadership was elected, this would not have been US stance because they knew how to handle those stooges. But IK is an unknown entity to them and it should remain so. US has a habit of interfering in domestic and political affairs of other countries. I hope with IK and his own method of dealing with these goras, he will be able to stop this interference.

 

[HAIDER]

It seems IMF loan to pay Chinese debt , then Chinese loan to pay IMF debt.... a game of debt.

 

[Clutch]

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

A blessing in disguise!

 

[ARMalik]

Members should understand that institutions like IMF, World Bank, Asian Dev Bank, Bank for international settlements, etc. were established by the US and its allies like UK to dominate and control the fiat currencies of not only US, UK and allies but also other countries. This is how they could effectively control and blackmail any country they want. But these institutions are facing external challenges to their monopoly by China, Russia and other countries.

IMF is an institution of control and nothing more, and IMF would love to give loans to Pakistan because the strings attached to such loans means that the country would be held hostage and won't be able to breath independently. Why do you think some no good indians here are advocating Pakistan to go to IMF?

People need to understand this before believing into any dic.k and harry news. This news of US warning IMF is nothing more than load of bollocks.

 

[Soumitra]

Whenever US does anything Pakistan has just one trump card - Increase transit tarrif

You forget that US has a full deck of cards

Regarding China - You will take loan from China to repay old loan from China

Wasn't CPEC the answer to all economic worries of Pakistan? Now it is your millstone

 

[Menace2Society]

Whenever US does anything Pakistan has just one trump card - Increase transit tarrif

You forget that US has a full deck of cards

Regarding China - You will take loan from China to repay old loan from China

Wasn't CPEC the answer to all economic worries of Pakistan? Now it is your millstone

You don't get returns straight away from an investment. CPEC isn't even finished yet. The returns will come.

Pakistans situation has been created by corrupt crimimal mafia groups inserted into Pakistani politics by foreign agencies. The chains have now been broken.

 

[Vijyes Yechury]

Members should understand that institutions like IMF, World Bank, Asian Dev Bank, Bank for international settlements, etc. were established by the US and its allies like UK to dominate and control the fiat currencies of not only US, UK and allies but also other countries. This is how they could effectively control and blackmail any country they want. But these institutions are facing external challenges to their monopoly by China, Russia and other countries.

IMF is an institution of control and nothing more, and IMF would love to give loans to Pakistan because the strings attached to such loans means that the country would be held hostage and won't be able to breath independently. Why do you think some no good indians here are advocating Pakistan to go to IMF?

People need to understand this before believing into any dic.k and harry news. This news of US warning IMF is nothing more than load of bollocks.

You are correct about IMF being there to control. But the idea that IMF is meant to repay the loans taken by another loan is wrong. IMF is not going to supply even a single dollar to repay any original loans. IMF only pays to cover for imports and asks for certain measures to bring control to economy. IMF loans are also expected to get higher precedence than other loans and Pakistan will be expected to refund IMF loans first.

What USA is saying is reasonable, though the tone may be rude.

 

[Ajaxpaul]

Members should understand that institutions like IMF, World Bank, Asian Dev Bank, Bank for international settlements, etc. were established by the US and its allies like UK to dominate and control the fiat currencies of not only US, UK and allies but also other countries. This is how they could effectively control and blackmail any country they want. But these institutions are facing external challenges to their monopoly by China, Russia and other countries.

IMF is an institution of control and nothing more, and IMF would love to give loans to Pakistan because the strings attached to such loans means that the country would be held hostage and won't be able to breath independently. Why do you think some no good indians here are advocating Pakistan to go to IMF?

People need to understand this before believing into any dic.k and harry news. This news of US warning IMF is nothing more than load of bollocks.

Wrong, infact India took IMF loans in the early 90s and guess which country we favoured till 5 yes back. Russia, enemy of US. Bulk of our money went to russian arms manufacturers.

 

[BHarwana]

Lol every one is discussing a US imagination with out realizing what is Pakistan actually doing. This US statement came just to stop the dollar crash which is still continuing to grow not only in Pakistan but also China.

Pakistan's foreign ministry has issued a statement and they have told USA to piss off.

https://twitter.com/x/status/1024509154638159873

Lol when USA says no loans from IMF means USA is desperate for Pakistan's assistance. People here don't see the reality. Pakistan just became more important than ever lol. You people are crying for loans I can see free money coming to Pakistan.