World Bank gives 48-hour ultimatum to Pakistan

[Prometheus]

KARACHI: Pakistan received a stern 48-hour deadline to take tough actions that include hiking of electricity tariffs by six per cent and implementation of the Value Added Tax (VAT) from July 1. On failure to do so, Pakistan will not receive $300 million under the poverty reduction support credit, the World Bank (WB) said.
If Pakistan succeessfully implements the two conditions, the approval of $300 million will be made during the World Bank meeting which is to take place on June 29 in Washington.

According to sources, authorities were alarmed and clueless about how to fulfill the conditions till May 27.

Authorities in Islamabad are aware that even if the International Monetary Fund (IMF) allowed Pakistan not to impose VAT in its budget, World Bank would show stiff resistance in providing any aid, as VAT is its brainchild.

The World Bank has been assistng Pakistan in preparations to introduce the VAT law to Pakistan during the past one year. However, there has been hue and cry from the business communities across Pakistan against the imposition of VAT. — DawnNewsDAWN.COM | Business | World Bank gives 48-hour ultimatum to Pakistan

 

[hillman32]

World Bank can go to hell.

Zardari and Nawaz Shareef and other corrupt politicians will bring BILLIONS OF DOLLARS from Swiss Account - looted from Pakistani treasury.

We can become a nation who can give loans instead of begger nation.

 

[H2O3C4Nitrogen]

It was coming ...
I hope the Gov donot takes WB Bullying ... Stop the Nato Supplies , Hell we are fighting a War and in these times public support is critical . By hiking Electricity Bills and including VAT public will greately be burdened and could come to streets which might create Bad Law and Order Situation.
Sell off some Nukes if the WB dosent supports ..!!

 

[Kompromat]

I hope people of Pakistan turn this deadline into an ultimatum for PPP govt.

 

[RobbieS]

Self delete

 

[SpArK]

World Bank can go to hell.

Zardari and Nawaz Shareef and other corrupt politicians will bring BILLIONS OF DOLLARS from Swiss Account - looted from Pakistani treasury.

We can become a nation who can give loans instead of begger nation.

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[pak-marine]

what genius agreed to these conditions :: to get a loan of 300mil the cost is increas the rare and non existent electricity by 6% plus charge VAT on top which i guess will be aprox 15-17%.

living for avg pakistanis will be inflated roughly upto 20% with more loadshedding ,meaning no electricity at all.

And the funniest part is world bank has provided this money to reduce poverty... WTF!?

 

[Emperor Palpatine]

Why does the World bank want these to be implemented in Pakistan ? Is it not a job of a sovereign country and not some bank ? I got little idea in economics and stuff

 

[Patti_polayadee]

if u want their loan..they set conditions...

 

[AstanoshKhan]

So, by implementing VAT on top of GST, a Rs. 100/- card of Ufone when you recharge deducts about Rs. 15.14/- as GST remaining Rs. 84.86/- and when you add VAT to that, the total amount you will get as recharge is Rs. 68.84. So a total of Rs. 32.16/- will be deducted as taxes GST+VAT.

The above is just a mere example but keep in mind, this VAT will completely destroy the Dairy business along with other small businesses, who are having a tough time in generating revenues just because of the bad policies of the government on energy crisis.

The slogan of PPP is to get rid of the poverty; Yeah sure, just kill them all poors with high inflations/prices and there will be no poors left.

 

[Emperor Palpatine]

if u want their loan..they set conditions...

Sounds more like bribing in this scenario .

 

[Neither Right Nor Wrong]

Why does the World bank want these to be implemented in Pakistan ? Is it not a job of a sovereign country and not some bank ? I got little idea in economics and stuff

1.To reduce the budget deficit.
2. To increase tax to GDP ratio.
Pakistan is spending more than its earning and is forced to borrow from various financial institutions to compensate the shortfall.
Hence in order for pak state to pay back its loans..it will have to earn more ie levy more taxes or start spending less.

 

[jha]

World Bank can go to hell.

Zardari and Nawaz Shareef and other corrupt politicians will bring BILLIONS OF DOLLARS from Swiss Account - looted from Pakistani treasury.

We can become a nation who can give loans instead of begger nation.

do you think they will..?
if they were patriotic and innocent why would they stash the wealth there..?

 

[rohailmalhi]

i think they should say not to this Loan ..............
We are in a very Good position to bargain .....but alas

 

[Patriot]

Let's see what happens.If they implement this then it'll be end of PPP.