IMF doubts Pakistan’s capacity to repay loans

7
80

The Pakistan Economy Watch (PEW) on Sunday said it would be difficult for Pakistan to secure another bailout package from the IMF to avoid looming crisis of external payments.
Pakistan enjoyed good relations with the US in 2008 when it got 7.6 billion dollar loan after two weeks of negotiations but now the situation is different, it said.
At present, our relations with the US are tense, IMF is focused on European crisis and unhappy over our failure to introduce reforms, said Dr. Murtaza Mughal, President PEW.
IMF doubts Pakistan’s repayment capacity; it is in no hurry to lend more to enable Pakistan to return 4.3 billion dollars in the next fiscal, he said.
He said that Pakistan has already taken IMF loans exceeding quota by 200 per cent while there are no plans to introduce any reforms which has frustrated IMF to a point that it has delayed visit of the mission.
Dr. Murtaza Mughal said that our economic managers can paint a rosy picture of economic miracles to please masses but cannot lure IMF officials who are well aware of the situation.
Finance ministry claim of 21 per cent hike in remittances touching $13.5 billion reflects trust of expats in policies of the government which is not reality. In fact, they are sending more money due to rising poverty, he noted.
They know that Pakistan’s current account‘s gap has increased to $ 12.6 billion compared to last year’s $ 8.4 billion, foreign investment has nosedived by 65 per cent and short-term receipts remained zero.
Similarly, he said, expressing pleasure over loans of World Bank can help satisfy electorate but it has nothing to do to cope with balancing the payments. Government may not get $ 80 billion any time soon that it claims NATO forces owe for its contribution to the international war on terror.
Similarly, there are no chances that other donors would help country to cope with the crisis in the making therefore government should think seriously about alternatives, said Dr. Mughal.

7 COMMENTS

  1. The only alternative to IMF loan under strict conditions is to bring the agricultural sector income under the tax net. Though it is very difficult as the Feudal determine the fate of this nation and agreeing to any tax on their huge incomes will not be so easy. However, these Feudal have to understand that majority is in abject poverty and they do not have much to lose. If this fragile economy collapses it is the Feudal class which will be the first to be targeted.

    • Good point. Im almost inclined to say "then let the economy collapse, just so we can see the end of feudal scum (system)."

      On another note, with the level of corruption, ignorance & mismanagement, this govt. is the worst govt. we could ever have.

  2. Dr. Sahib. Why are you after my husband who is an innocent angel. I was always fond of keeping dogs, so don't blame me.
    Regards,
    From Hell

    • You are at least lucky that your husband spent 20 years married life with you despite all the jail and death threats, but my boy friend Imran Khan was a cheater and I m sure he wud cheat his nation too. He event forgot his blood relation Taryan. I appeal to Pakistani nation not to vote him next election, he is like a thug, thug of thugs

      Praying for Pakistani nation to save it from a Great Cheater

      From Paradise

    • You are a promising son of mine and I am happy you well remembered my lessons in corruption, like Loan defaults, Money laundering, Impostering in Hadibia Paper Mill, My lecture on how to embezzle 45 billion out of 65 billion in Motorways schemes. Indeed your memory is sharp in keeping my countless cooruption lectures on MCB scandal, Shahbaz has outsurpassed Zordari in Laptops, SastiRoti, land mafia. He is a good competitor. Going by his performance I m sure he will outsurpass Zardari

      Ya Allah accept my prayers alongwith my sons's corruption

      From burning Hell

  3. You are at least lucky that your husband spent 20 years married life with you despite all the jail and death threats, but my boy friend Imran Khan was a cheater and I m sure he wud cheat his nation too. He event forgot his blood relation Taryan. I appeal to Pakistani nation not to vote him next election, he is like a thug, thug of thugs

    Praying for Pakistani nation to save it from a Great Cheater

Comments are closed.