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Pakistan seeks IMF bailout

Discussion in 'South Asia & SAARC' started by layman, Jun 19, 2013.

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  1. layman

    layman Aurignacian STAR MEMBER

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    ISLAMABAD, June 18: Pakistan and the International Monetary Fund (IMF) are opening on Wednesday week-long discussions on Islamabad’s latest fiscal and macroeconomic adjustments and its request for a possible $5 billion bailout package for repayment of the fund’s outstanding loans.

    A senior official of the ministry of finance said the government had made a fiscal adjustment of about 2.5 per cent of GDP in its budget for 2013-14 to reduce fiscal deficit from 8.8pc to 6.3pc of GDP during the next financial year and hoped it would convince the IMF into agreeing on a new Extended Fund Facility (EFF) of about $5bn repayable in 10 years.

    Pakistan’s top priority during the talks will be to secure a letter of comfort from the IMF to pave the way for resumption of programme loans by the World Bank and the Asian Development Bank held up since 2009 after suspension of the IMF programme on failed reforms.

    Pakistan will also brief the IMF mission on its plans to settle over Rs503bn of energy sector circular debt before the middle of August and a roadmap to restructure the power sector and further fiscal adjustment of 1.3pc of GDP in 2014-15 and 1pc of GDP in 2015-16 to bring down fiscal deficit to about 4pc of GDP.

    The official said that as part of preparations for talks with the IMF, the government has decided to avoid quarterly increases in electricity and gas tariffs — an old demand of the fund to bring energy prices to market-based tariffs by eliminating all subsidies.

    Finance Minister Ishaq Dar told journalists recently that the IMF mission would remain in Pakistan from June 19 to July 3 for substantive talks and post-programme monitoring of the existing programme but a senior official said the talks were expected to be concluded by June 26.

    The two sides are required to hold biannual review of Pakistan’s economic situation as part of Post-Programme Monitoring (PPM). At the end of discussions, Pakistan is expected to make a formal request to the IMF for a new EFF programme. The mission will submit Pakistan’s request as well as its assessment report to the IMF executive board.

    The official said the authorities were comfortable with foreign exchange reserves till the end of July even after repayment of about 450m special drawing rights (IMF currency) – about $675m.

    However, the authorities are not comfortable about some heavy repayments due to the IMF in October-November when Pakistan has to repay 1.685m SDRs ($2.5bn) that could reduce reserves to a critical level and put pressure on exchange rate.

    More Info
     
  2. Marqueur

    Marqueur Peaceful Silence ELITE MEMBER

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    repay in 10 years :lol: r fcuking kidding me ... append one more 0 please ... :pop::pop: nice :pop:
     
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  3. layman

    layman Aurignacian STAR MEMBER

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    They are trying to get out of the Circular Debt, which is good idea. But they cant borrow from the same creditor and think that they are dumb to accept it.
     
  4. Rock n Rolla

    Rock n Rolla Lt. Colonel STAR MEMBER

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    :pop: :pop:
     
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  5. Anees

    Anees Lt. Colonel ELITE MEMBER

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  6. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    its should be a good laugh to watch
     
  7. Gessler

    Gessler BANNED BANNED

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    And just the other day, they increased they're defence budget by 15pc. I think it's
    finally happening.

    Pakistan has run out of money.

    They can't go on begging forever, it's a matter of time before the IMF gets bitchy and asks you
    a simple favour "repay the first loans and then ask for more", and the US of A finally runs out
    of uses for Pakistan and raping them for 50+ years, and goes out of Afghanistan by 2014.

    All we gotta do is wait for Pakistan to collapse from the inside out and after that has happened,
    calmly walk in and take them and send them where they belong. The land of Pakistan should
    again be part of India, where it's rightful place is.
     
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  8. omya

    omya Lt. Colonel ELITE MEMBER

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    very true n again all is done by allah... allah knows bad guys very welll
     
  9. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    no thanks, we are better off without Pakistan
    its just asking for more trouble
     
  10. layman

    layman Aurignacian STAR MEMBER

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    We dont need Pak. It will be like shooting our own foot. But cant stand the denial ...
     
    Last edited: Jun 22, 2013
  11. kumar2310s

    kumar2310s 2nd Lieutant FULL MEMBER

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    Giving a loan to Pakistan is funding its Arms procurement. All aid given by US in Afgan war against terrorism was diverted by Pakistan in procuring arms and training Terrorists thus making a mockery of US war against terrorism.
     
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