IMF Demands Blood From Flood-Ravaged Pakistan
Callously exploiting the humanitarian disaster caused by six weeks of flooding, the International Monetary Fund (IMF) is spurning Pakistan’s pleas for the release of funds under a 2008 loan agreement until Islamabad implements wrenching policy changes—changes that will further squeeze the incomes of the country’s impoverished toilers.
Earlier this summer Pakistan was due to receive a $1.3 billion tranche from an IMF loan of $11.3 billion. But the IMF delayed release of the funds after Islamabad failed to meet various IMF performance targets...
See also how WB is using it's muscle in tandem, trying to force the government to increase power tariffs:
Oh, good, nota! I was wondering whether this piece of news deserved to be posted here or not then opted instead for something on Kashmir.
We are so sick and tired of the begging bowl economy the present govt of Pakistan has adopted as the answer to all our problems that I think even sovereign default would be better than prolonged relations with the two criminal organisations we call IMF and WB.
But what will happen of course is further price hikes in the immediate future. I can just imagine what a marvellous effect this is going to have on flood-afflicted Pakistan.
"I think even sovereign default would be better than prolonged relations with the two criminal organisations we call IMF and WB."
Without a doubt! I have been saying so since IMF was reintroduced but again it seems it is hardwired into the psyche of most that we just cannot do that...
BTW: Congratulations on the "New" SBP Governor. All papers are singing songs of his "illustrious career". No surprise that includes:
Kardar regularly provides consultancy services to multilateral and bilateral donors like the World Bank, the Asian Development Bank, the Department for International Development (DFID) of the UK, etc.
So you think he's get you out of the clutches of WB, IMF, ADB or put you in their more tightly? ;-)
P.S. that reminds me: I posted a link somewhere here about the four new demands of IMF, one being "make SBP more autonomous" which only means "give us full control". Now once again (as always) they have their guy captaining the ship...so be ready to sail into some icebergs...
What iceberg, nota? The vessel of state and the economy is so wrecked it can't even make it to the next iceberg.
But I'm ever so pleased that you too agree with S.D. as a solution to many of our econ problems. Ecuador did it and began to recover thereafter. Well, no such hope under this govt. And your further news about our marvellous Mr Kardar is just another nail in the coffin of the sinking hulk, if I may mix my metaphors.
If Pakistan has soverign default that means we are bankrupt, that would mean currency would plummet, Rupee would fall to PKR100/USD or worse and that would mean hyperinflation and scarce resources.
Would you buy Rs100 chicken or Rs200 tomatos etc? How would you pay for it? How would the common pay for it. Crime theft. Our Oil imports would skyrocket and pump prices would increase. So a Soverign deafult is a very scary thing, only those who want to live in stonehenge like Taliban like country are comfortable with this sceanrio. All Industy in Pakistan would grind to a stop, shortage of fuel would mean massive and prolonged power break downs. So dont take a soverign default lightly.
NP, the way I imagine it, a sovereign debt default has to be carefully planned. If Ecuador could do it, so can Pakistan. It would imply very strict control over food prices and inflation in general, fuel coming in at minimum cost through Iran. Ecuador had Venezuela as its supplier. And then building the country up from scratch again perhaps, but at least without the burden of a tremendous debt which not one person in this country was responsible for. This is not a scenario for the weak-hearted, agreed. And it has nothing to do with the Taliban in any way. As for power, Iran has on several occasions offered to help us out with it. But on US say-so, Pakistan has turned down such offers.
Anyway, we haven't got the right person in government yet to carry out such a daring deed. And probably before we get our default scenario in place, several west countries may have already gone through it, including US. So we'll have a plethora of examples to choose from.
Mary hoye pe 100 durray .
Please, those of you who question sovereign debt default, may I recommend the most recent Max Keiser video HK has posted on this blog. Listen to it carefully, Iceland, Ireland, Greece and Eastern European countries are already going that way. US is poised to do the same one of these days. And then our turn will come as well.