Will PTI be forced to embrace IMF?
Video     Photos     Pakistan     World     Islam     Health     Crime     Islamic News     Business     Society     India     Travel     Middle East     Sport     sci/tech      Contact      RSS

Mobile phones not to be blocked after Oct 20, says minister

Turkish daily says audio tapes indicate Saudi journalist 'decapitated'

Is CJP in trouble after another reference is filed against him?

Is former President Musharraf on deathbed?

Five-star Abbas bowls out Australia

Can NAB really hold Shahbaz Sharif accountable?

Iran assured of help in tracing abducted guards

A deal again: How US going to rescue Saudia from Kashoggi's murder episode?

Zainab's rapist, murderer Imran Ali hanged at Kot Lakhpat Jail

Saudi Prince calls for military campaign against Kuwait, sparks backlash

Allama Hassan Zafar says those ridiculed judiciary, top judges, are freed

JCSC Pakistan chief in US for conference on countering violent extremist outfits

Forward bloc in PTI?

China endorses Pakistan’s aid request to IMF

Sunday by-poll: Analysis and lessons for PTI

Shrines under the watchful eye: CJP orders forensic audit

Saudi riyal at lowest level since 2016 over Khashoggi case

India, Iran to speed up Chabahar plan before US bans

UET Peshawar Students Develop a Solution to Power Theft

Pakistan wins first medal in 2018 Youth Olympics in wrestling

Shia pilgrims denied entry into Balochistan, stuck at provincial border with Sindh

Iran embassy in Ankara evacuated after 'bomb warning'

Mother defeats son in Muzaffargarh by-elections

Asia Bibi case: Opportunist Khadim Rizvi threatens judiciary, NGOs and the lawyer

U.S envoy met the Taliban representatives in Qatar

$2 bn RLNG pipeline: Crucial Pak-Russia talks begin today

Saudi source: Reconciliation with Iran possible if sanctions imposed

Three Saudi soldiers killed in clashes with Yemeni army in border areas

Saudis 'reject' threats as stocks drop amid scrutiny over missing journalist

On the decliine: PTI fails to clinch NA seat in by-polls

Jamal Khashoggi was no Revolutionary, Rebel or Human rights defender

The question of cuffs

Pakistan By-election results 2018 LIVE Updates

After DPO Gondal, another short shrift for IGP Punjab

Illegal recruitments scam: NAB Arrests ex-PU VC, five registers

TLP threatens to paralyse country if Aasia Bibi is acquitted

In the shadow of loan: Is US trying to create rift between China and Pakistan?

British-Pakistani Iris Iftikhar eyes Gold at British Taekwondo Championship

Trump using Iranophobia to sell American munitions to Arab states: Nasrallah

UK imam fired for anti-Saudi comments

Sunni Ittehad Council chief condemns arrest of Faisal Raza Abidi

Pakistan will continue to trade with Iran in own interest despite US sanctions

Jamal Khashoggi changes the Middle East at potentially horrible cost

Turkmenistan-Afghanistan-Pakistan-India Pipeline

Why has Mr. Shaukat Aziz Siddiqui been removed as IHC Judge?

How to register your mobile device with PTA?

US sees Chinese debt responsible for economic woes in Pakistan

Indian troops martyr PhD scholar Dr Manan Wani among two in IoK

HRW urges Saudi allies to review ties over missing journalist

Australia dash Pakistan's dreams by drawing first Test

Minister sees 8 months halt every year if Pakistan-Iran ferry service launched

Pakistan formally seeks financial assistance from IMF

Saudi crown prince ordered operation against missing journalist: report

Murder of Saudi Journalist: A ticking time bomb between Turkey and KSA

Pak-China Armed Drone deal and its implications in the region

Who is Calsons?: NAB’s best bet in Ashiana case

'Yemenis target Saudi military boat in counter-strike'

Saudi Arabia's dark history of abduction and killing dissidents

China to sell unmanned, strike-capable drones to Pakistan

Turkey vows to put on trial Saudi officials tied to Khashoggi case

Pakistani rupee, the cheapest currency in South Asia: Report

Faisal Raza Abidi arrested outside Supreme Court for criticizing powerful figures

Who is Ibrahim Koko?: Startling case of fake travel documents

IMF warns Pakistan against ‘excessive loans’ from China

“No NRO”: PM maintains rigid stance against corruption

Saudis, authoritarian leaders inspired by Trump: Sanders

Allama Raja Nasir asks government to rescue Shia Zaireen at Taftan border

DPO Pakpattan case: Who is the real winner?

Pakistan With or Without the IMF?

Qatar Airways will continue flights to Iran, unfazed by US sanctions

Pakistan extend lead to 325 against Australia

No threat to Pakistan from Cyclone Luban

Neither Saudi Arabia, nor other producers can replace Iranian oil: Zangeneh

Blasphemy charges: Khanewal police book man for claiming to be '11th caliph'

PhD Transfer Programs: HEC greets US delegation

Shahbaz Arrest: Nawaz steps in as PML-N bets on sympathy vote

Pakistan ex-minister suggests to enhance trade ties with Iran

Imran must keep working relations with Iran

Treason case: LHC orders removal of Cyril Almeida's name from ECL, withdraws warrants

Another surgical strike?

Saudi cleric close to MBS calls for 'peace' trip to Israel

Cleric declares himself 11th Imam of Islam

ASWJ Mengal group terrorist involved in Shia genocide released

LHC rejects police stance on permission for azadari Majlis in houses

Review of CPEC accord underway: Imran

LNG Accord: Are Pak-Qatar ties in danger?

Shahbaz Sharif Arrested: What Next?

Pakistan off to steady start in first Test against Australia

Health Ministry: 1 in 3 Yemeni children suffer from severe malnutrition

Missing Saudi journalist killed at consulate in Turkey: Sources

Is Shahbaz Sharif's arrest meant to rig elections?

Peshawar University fiasco: A shame for democracy

Demonstration held in Islamabad to protest against Saudi govt

Inside story of Mehmoodur Rasheed son's case

What Fawad Hassan Fawad disclosed about Shehbaz Sharif at NAB office?

Sarfraz wants Yasir Shah to attack new-look Australia

What happened in the Cabinet meeting?

In rebuttal to Trump, Salman says Saudi won’t pay US for kingdom’s security

Blackwater plan to outsource Afghan war draws angry response from Kabul

Politicians, analysts react to Shahbaz Sharif's arrest by NAB

2018-10-05 05:35:42

Will PTI be forced to embrace IMF?


Opposition leaders slammed the government for ‘accepting IMF conditions’ within the first 100 days of its 5-year tenure in a session of the National Assembly. Meanwhile, officials from the international monetary fund will conclude their meetings with top government officials from Pakistan today, (Thursday).

The opposition criticized the ‘mini-budget’ the Pakistan Tehrik-i-Insaf government presented last month. Hina Rabbani Khar, former foreign minister and member of National Assembly elected on the Pakistan Peoples Party’s ticket, argued that ‘increase in the prices of gas…shows that the government has already accepted the IMF conditions.” In the first week of September, Prime Minister Imran Khan approved an increase of 46% in natural gas price, as advised by the OGRA (Oil and Gas Regulatory Authority).

This brings us to the question of whether or not the PTI-led government will go to the International Monetary Fund, contrary to their claims so far.

This move was heavily criticized back then since the PTI chief had promised not to add to the burdens of the common man in his election campaign. An official from the government, however, responded to criticism by saying, “there is no other way out.” Ms. Khar also stated that the government had added to the misery of the poor. However, the nature of tax hikes in the mini-budget shows that is not the case.

The excised duty on cars of 1800cc and above has been doubled. There will be additional regulatory duties on about 312 items, including expensive smartphones. Mr. Asad Umar, the finance minister, said at the floor of the parliament that the increase in taxes was targeted at the rich and upper classes.


A look at the budget brief for 2016-17 shows the myriad problems that the economy of the country is suffering from. Indirect taxes collected by the Federal Board of Revenue were Rs 2,142,160 million while direct taxes collected amounted to Rs 1,378,840 million. In other words, the burden is on the consumer to make up for the government’s inability to collect direct taxes.

The overall expenditure during 2016-17 had been estimated at Rs, 4,894.9 billion out of which the share of current expenditure (i.e. expenditure for the day-to-day functioning of the government) was Rs 3,844 billion (70%) and development expenditure was only Rs, 1050.9 billion (30%). This means that the government is mostly pre-occupied with ‘running the government’. Increasing development funds would entail a decrease in current expenditure, which is both politically and financially not feasible.

The minister for finance and the advisor for commerce accompanied. Pakistan invited Saudi Arabia to become part of the China-Pakistan Economic Corridor and finance some projects.

A major portion of current expenditure comprises of salaries and pensions of government servants. Since there aren’t enough funds for development projects that could help accelerate growth in the long run, the government inevitably has to look for finance from ‘external sources’, which include loans, grants, and aid. The revenue from external sources was calculated to be Rs 996,287 million in 2016-17. Bank borrowing amounted to Rs 741, 367 million.

Time and again, the sitting government of Pakistan has opted to go to the IMF for temporary relief in the country’s fiscal crisis. And the country never manages to get out of the debt trap. This brings us to the question of whether or not the PTI-led government will go to the International Monetary Fund, contrary to their claims so far.

Minister for finances, Asad Umar, said at the floor of the parliament that going to the IMF was not a feasible idea. The loan they provide comes with strings attached, that demand cuts in welfare spending. The government probably can’t afford to make such a move, given that the PTI wants to contend the next elections.

Mr. Umar has rightly pointed out that the current economic woes Pakistan is facing are not the fault of any single political party but have been for at least 10 to 15 years in the making. Prime Minister Imran Khan, Minister for Information Fawad Choudhary and the finance minister have all indicated that they will look sources of finance from their ‘friends’.

“It’s not the money as much as the credibility that we need the IMF for,” a government official said, adding that “at the moment there is no plan for an approach to the IMF”.

The PM had visited Saudi Arabia in his first foreign visit abroad. The minister for finance and the advisor for commerce accompanied. Pakistan invited Saudi Arabia to become part of the China-Pakistan Economic Corridor and finance some projects. Whether or not Riyadh joins Beijing in CPEC, a Saudi delegation has agreed to sign some MoUs that will allow the establishment of an oil purification facility at Gwadar with a production capacity of 110,000 barrels per day.

The Saudi delegation which is in Pakistan for a four-day-visit will also visit gold and copper mines in Baluchistan to ascertain prospects of investing there as well. However, this may still prove to be insufficient. The budgets deficit and the debt trap can’t be helped by help from ‘friends’ alone. A team from the International Monetary Fund, led by the IMF’s mission chief for Pakistan Harad Finger, is due to complete their week-long visit to Pakistan.


They have met with senior officials from the ministry of finance and the federal board of revenue. The minister for finance will also meet IMF officials to discuss policy options. Reportedly, the members from the IMF team have expressed reservations about the government’s attempt to engage with ‘friends’ to somehow find ways to secure sources of finance other than the International Monetary Fund. At best, this would delay going to the IMF for the government’s first 100 days.

The team had gathered huge amounts of data from the ministry of finance, FBR and the State Bank. The IMF has advised the government to keep an eye on global oil prices. Oil forms a major chunk of the country’s import bill. According to Bloomberg, oil prices will rise next year because OPEC members have agreed to maintain production cuts. That could mean trouble for energy-starved nations like Pakistan.

Will the government kick the can further down the road and choose to go to the IMF like previous governments? That is likely to add to the growing debt the country is mired in.

According to government officials, engaging with IMF is simply a means to ensure the country’s reputation as a credible and stable market. Nations in the bad books of IMF can find it difficult to obtain finance from external sources. “It’s not the money as much as the credibility that we need the IMF for,” a government official said, adding that “at the moment there is no plan for an approach to the IMF”.

To be fair, the PTI-led government didn’t create the mess the country is in. It merely inherited the result of a series of poor policy decisions and missed opportunities that go back at least a couple of decades. That being said, the Pakistan Tehrik-i-Insaf has made tall claims about strengthening the country’s institutions and stimulating indigenous growth.

Will the government kick the can further down the road and choose to go to the IMF like previous governments? That is likely to add to the growing debt the country is mired in. Or will the government take decisions that will be painful politically but might put the country’s economy in the right direction? All this should become clear by the end of this year.

Leave a Reply

Your email address will not be published. Required fields are marked *

Tags:   PTI ، IMF ،
From other agencies (RSS Reader)

Brexit Barriers

- presstv

Brexit Barriers

- presstv