IMF bailout package has stirred the politicians as after other opposition leaders former Finance Minister and PML-N leader Miftah Ismail in a series of tweets said that during the last IMF programme under PMLN we were able to increase GDP growth and reduce inflation.
“Billion in new taxes. Accounting for inflation, next year would require additional taxes of over Rs 1000 billion, which is over 25% increase. This will cause widespread hardship, unemployment and inflation. 3) The slowdown of the economy will increase poverty. So BISP spending”.
“will go up, otherwise we will see massive increase in malnutrition and stunting. Rich people: please do more charity this year. 4) IMF wants letter from other donors that they will give more loans. This means that China will have to assure IMF that it will re-roll its loans.”
“IMF mentions progress towards money laundering and counter financing of terrorism. The suggests that the Fund will now also look at FATF decisions. 6) The Fund statement doesn’t mention that prices of gas and electricity will go up, but insiders say that’s also been agreed”, he said in another tweet.
“The Fund statement also doesn’t directly mention interest rate hike but that’s also expected. PTI has ruined the economy really fast due to its incompetence. The PM was right to fire the FM. But now this will mean that the adjustment programme will be very hard for the poor”.
The International Monetary Fund (IMF) and Pakistan have finally reached a staff-level agreement on economic policies for a three-year extended fund facility.
The PTI govt and IMF have reached a deal. My quick and initial assessment of the deal shows these items to be significant.
1) Free float of the Pakistani rupee.
2) Reducing primary deficit to 0.6% of GDP next year. This year it will be about 2.5% of GDP. So they require Rs 800— Miftah Ismail (@MiftahIsmail) May 12, 2019
Under the agreement, Pakistan will get six billion dollars in three years, while an additional amount of two to three billion dollars may likely come from World Bank and Asian Development Bank on less interest rate. The program aims to support the authorities’ strategy for stronger and more balanced growth by reducing domestic and external imbalances, improving the business environment, strengthening institutions, increasing transparency, and protecting social spending.
The PTI govt and IMF have reached a deal. My quick and initial assessment of the deal shows these items to be significant.
1) Free float of the Pakistani rupee.
2) Reducing primary deficit to 0.6% of GDP next year. This year it will be about 2.5% of GDP. So they require Rs 800— Miftah Ismail (@MiftahIsmail) May 12, 2019
The PTI govt and IMF have reached a deal. My quick and initial assessment of the deal shows these items to be significant.
1) Free float of the Pakistani rupee.
2) Reducing primary deficit to 0.6% of GDP next year. This year it will be about 2.5% of GDP. So they require Rs 800— Miftah Ismail (@MiftahIsmail) May 12, 2019
The PTI govt and IMF have reached a deal. My quick and initial assessment of the deal shows these items to be significant.
1) Free float of the Pakistani rupee.
2) Reducing primary deficit to 0.6% of GDP next year. This year it will be about 2.5% of GDP. So they require Rs 800— Miftah Ismail (@MiftahIsmail) May 12, 2019
5) IMF mentions progress towards money laundering and counter financing of terrorism. The suggests that the Fund will now also look at FATF decisions.
6) The Fund statement doesn’t mention that prices of gas and electricity will go up, but insiders say that’s also been agreed.— Miftah Ismail (@MiftahIsmail) May 12, 2019
7) The Fund statement also doesn’t directly mention interest rate hike but that’s also expected.
PTI has ruined the economy really fast due to its incompetence. The PM was right to fire the FM. But now this will mean that the adjustment programme will be very hard for the poor— Miftah Ismail (@MiftahIsmail) May 12, 2019
