World Bank, IMF chiefs refuse to meet Pakistani delegation

[Bl[i]tZ]

The International Monetary Fund’s (IMF) managing director and the World Bank’s president have refused to meet the delegation being led by Finance Minister Dr Abdul Hafeez Sheikh in Washington. IMF’s senior deputy managing director Mr David Lipton however is scheduled to meet the Pakistani delegation today.

Meanwhile, during meetings with IMF’s lower level management, the organisation has agreed to provide technical assistance in areas of debt management, fiscal discipline and tax enhancements. Also, a schedule has also been agreed upon between the two entities under Article 4, to examine Pakistan’s economic progress. In this regard, a senior member of the delegation told Express that though Pakistan no longer needs to abide by the Standby Arrangement Programme (SBA) since the programme and its conditions no longer exist, but even then they have told the IMF that they will still follow its conditions.

The member said that though IMF’s managing director Christine Logarde and the World Bank’s president Robert Vilke had refused to meet the Pakistani delegation, but nonetheless ‘highly successful’ meetings were held with other management officials from both organisations.

Sources said another meeting will be held today with IMF’s senior deputy managing director. They added that finance minister has met World Bank and IMF officials on the sidelines, while requesting them for technical assistance in three specific areas. Officials of the Pakistan embassy in Washington were unavailable for comments.
(With additional reporting by Huma Imtiaz in Washington DC)

‘No time and respect’: World Bank, IMF chiefs refuse to meet Pakistani delegation – The Express Tribune


Published in The Express Tribune, September 25th, 2011.

 

[Patrician]

...Whatever happened to Pakistan saying goodbye to IMF?

Looks like its someone else waving the hand here.

 

[jbond197]

RiazHaq posted this couple of days back in his thread "Pakistan's Good bye to IMF"

Citing significant improvements in Pakistan's current account balance, Pakistan's Finance Minister Dr Abdul Hafeez Shaikh has said that his government would not waste its energy on reviving the currently suspended IMF program that began in 2008, or seek a new IMF bailout, according to a report in Pakistan's Dawn newspaper.

same Dr Abdul Hafeez Sheikh now seen running after IMF managing director.. Lol, RiazHaq another failed logic to your credit ..

 

[Luftwaffe]

A promising good move and news IMF and WB must not let another penny fall into the pockets of The Corrupt Governments of Pakistan may it be PPP Zardari , nawaz sharif or musharraf.

 

[Tangent]

RiazHaq posted this couple of days back in his thread "Pakistan's Good bye to IMF"



same Dr Abdul Hafeez Sheikh now seen running after IMF managing director.. Lol, RiazHaq another failed logic to your credit ..

He must be busy writting another story - something like "Pakistan refused to meet IMF Bosses "..
..He is a spin doctor..

 

[President Camacho]

A promising good move and news IMF and WB must not let another penny fall into the pockets of The Corrupt Governments of Pakistan may it be PPP Zardari , nawaz sharif or musharraf.

You are committing the mistake of painting everyone in the same color. The PPP government, indeed corrupt, but is powerless and may even be called impotent when it comes to implementing reforms to change the country. Come Nawaz Sharif and Pakistan will be in the US's pocket simply because Nawaz's government will be more than ready to screw the country to appease the fellow elites.

At least the PPP government is ready to stand by the Army against the US, but it was the same Nawaz if you remember who first went running to meet, before anyone, the US Ambassador to ask what to do with Pakistan.

People in Pakistan think democracy is a magic wand, wave it once, and things change in a flash. This lack of patience and confidence in democracy will cost them dearly. To have expectations is not bad, but setting unrealistic goals for the government, is something that will hurt none but the people.

Ironically, the same people who never go to vote, are the ones expecting the democratic government to do some sort of miracle.

 

[AZADPAKISTAN2009]

That means Pakistan can say no to IMF debt they don't want their money back

 

[President Camacho]

Pakistan’s IMF rebuff to be short-lived

ISLAMABAD: While Pakistan appears to be ending its program with the International Monetary Fund, there’s a real possibility Islamabad will have to later go back and ask for new loans, and it may not then have the critical backing of the United States.

The ruling Pakistan People’s Party (PPP), fearful that economic reforms could be politically risky before senate elections in March and a parliamentary poll in 2013, has distanced itself from the Fund.

Pakistan, according to sources, has decided not to seek a new loan programme or an extension of the three-year loan package that ends on Friday.

Analysts say the government is taking the risky move of choosing short-term political gain over long-term economic stability.

If Pakistan later decides to seek a new IMF program — and most economists think it will — the chances of success could be hurt by a current crisis in bilateral ties with Washington.

“It is only a matter of time before we (Pakistan) go back to the IMF because our external position is just not sustainable,” said Sayem Ali, an economist at Standard Chartered Ltd.

In 2008, Pakistan averted a balance-of-payments crisis by securing — with help from its ally the United States — the $11 billion IMF loan on favourable terms.

At present, Pakistan can pay its bills and a government official said the economy can withstand a break with the IMF.

But there are serious doubts about financial viability beyond the fiscal year that ends in June 2012.

LITTLE CREDIBILITY

Pakistan’s economy remains highly vulnerable to widening deficits and the move away from the IMF could later spawn ratings downgrades as well as make other governments and donors reluctant to give loans.

“On its own, the government has little financial credibility,” said Asif Qureshi, director of Invisor Securities.

Given the crisis in relations with the United States, which has sway in the IMF, Washington may not be willing to help Pakistan get lenient terms in any future negotiations.

It’s unlikely the U.S. will “go out full force” to support Pakistan with the IMF, said Shamila Chaudhary, a Washington-based analyst at political risk firm Eurasia Group.

Pakistan’s highly unpopular government has faced fierce resistance from opposition parties in the past when it tried to implement politically-explosive reforms, including ending electricity subsidies and broadening one of the world’s lowest tax bases.

The ruling PPP needs to retain the support of its coalition partners to boost Senate seats. The party is acutely aware that IMF reforms are unpopular in Pakistan, where many people view the lending institution with suspicion.

Caving in to the IMF has proven costly in the past. In January, a vital coalition partner withdrew to protest fuel price rises until the government reversed its decision.

And because of failure to implement reforms, Pakistan has only secured $8 billion under its IMF loan, rather than $11 billion.

Sakib Sherani, chief executive of Macroeconomic Insights, said the government would likely defer any new IMF program until after the elections and use forex reserves for debt payments in the meantime.

Pakistan’s foreign exchange reserves were $17.64 billion in the week ending Sept. 17, which cover about five to six months of import payments, and hit a record $18.31 billion in July.

But Eurasia Group’s Chaudhary said that only $4 billion of the total comprises the central bank’s own deposits as the remainder includes money borrowed from bilateral and multilateral donors.

Pakistan’s current account deficit in the first two months of the 2011/12 fiscal year narrowed to $189 million from $1.016 billion in the same period last year.

BUILD UP

But analysts said pressure on the external front is likely to build up as IMF repayments start. According to official data, projected repayment during the year ending June 2012 is $1.37 billion, which analysts said the government could perhaps absorb.

However, a lack of inflows due to the strained relations with the United States and a slowdown in growth could put the economy in a very difficult position. Repayments to the IMF will peak in 2013-14, at $3.38 billion.

Analysts said the fiscal deficit for 2010/11 (July-June) was more than 6 percent. The government hopes to contain it at 4 percent this fiscal year, but it could be larger as the government lacks ability to use onshore bonds to fill gaps.


DAWN


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This time when Pakistan goes to the IMF, the conditions are going to be way more difficult.