IMF approves 3-year $6.6bn package
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WASHINGTON: The International Monetary Fund (IMF) approved on Friday a three-year arrangement for providing $6.64 billion to Pakistan to support its economic reforms and growth.
The approval enables an initial disbursement of about $544.5 million while the remaining amount will be evenly disbursed over the duration of the programme, subject to the completion of quarterly reviews.
The arrangement under the Extended Fund Facility equals 425pc of Pakistan’s quota and aims “to support the country’s economic reform programme to promote inclusive growth”, said a statement issued here.
Know more: IMF approves $1.05bn in latest Pakistan loan
While approving the extended facility, the IMF executive board noted: “Despite the challenges it faces, Pakistan is a country with abundant potential, given its geographical location and its rich human and natural resources.”
The board also endorsed the government’s economic reforms programme, hoping that it “help the economy rebound, forestall a balance of payments crisis and rebuild reserves”.
The reforms package would also “reduce the fiscal deficit, and undertake comprehensive structural reforms to boost investment and growth”, it added.
The IMF executive board reminded the government that adherence to the programme would catalyse the mobilisation of resources from other donors.
Nemat Shafik, IMF’s deputy managing director and acting chair, however, noted that Pakistan still faced “serious economic challenges (as) overall vulnerabilities and crisis risks (remain) high, with subpar growth and unsustainable fiscal and balance of payments positions”.In this context, “the authorities’ comprehensive economic programme is timely and welcome”, she added.
Published in Dawn, March 28th, 2015
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Comments (44) Closed
Mar 28, 2015 07:17am
And we all know where half of this will go!!!
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Mar 28, 2015 07:42am
Out of IMF and into the pockets of the Sharifs, army and their crooks while the people have to psychics back through indirect taxation. But you get what you vote for.
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Mar 28, 2015 07:44am
@Mohammad Cynicism at its best !
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Mar 28, 2015 07:44am
Implement a genuine tax reform that increases our tax to gdp ratio from our current 10% to 15% (at least) and we won't need IMF anymore.
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Mar 28, 2015 07:48am
Big mistake pretty much will go back where it comes from but nothing will go to poor.
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Mar 28, 2015 07:49am
Their will be no growth until we reduce our population substantially and deport all migrants and refugees and we will be in downward spiral until then.
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Mar 28, 2015 07:51am
Keep up the hard work NS.
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Mar 28, 2015 07:51am
Nawaz you were elected to get rid of loans, not increase them.
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Mar 28, 2015 07:51am
IMF should stop disbursing this package as it will reach common man or help in any infrastructure development , totally waste of all the money while increasing the debt burden on common man , finally we will have no choice but to integrate with China in return for payment of loans by them we will be slaves of China permanently and all Pakistan under their total authortarian control.
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Mar 28, 2015 07:55am
Please dont use this money for building bridges and roads instead spend it on Education.
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Mar 28, 2015 08:11am
No need to go after this money and increase worries
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Mar 28, 2015 08:17am
"We will break the begging bowl"- nawaz sharif before elections
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Mar 28, 2015 08:19am
"arrangement" means another loan !
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Mar 28, 2015 08:19am
And at what interest rates might that loan be? That's never brought to light
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Mar 28, 2015 08:20am
This will help go along way with economic reforms and continued investments into the right sectors. What I dont understand is why are the amounts so small. Pakistanis must realize that we are still a developing nation and as such will need time and investment. While not very much liked we are still unfortunately in need of this aid and there is no shame in that as long as it is invested properly and the dividends worth it. We should have a Marshal plan like arrangement. Here's to a brighter future!
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Mar 28, 2015 08:33am
@Mohammad "Wishful thinking"
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Mar 28, 2015 08:35am
Pakistan received billion $ Alms from IMF. gr8 achievement by Pakistan, now I believe that Pakistan will become Super Power soon after billion years.
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Mar 28, 2015 08:36am
Its never good to borrow all the times
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Mar 28, 2015 08:40am
Stop receiving loans after loans, the future generations of Pakistan will not be able to pay them back and our country will be a slave forever to the lenders.
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Mar 28, 2015 08:45am
Are we are making the right decision by borrowing more money from IMF? We know this money will be used to bridge the gap between exports and imports. Couple of years from now no body will know what happened to the funds. Most of our taxes collected from the public will be spent to service the loans. Please don't mortgage our future with more loans. We have to tighten our belt and balance the budget.
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Mar 28, 2015 08:57am
govt doing good.... GDP picking up.. foreign reserved reached to 15 billion... no corruption scandals... its not that bad...
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Mar 28, 2015 08:59am
Great News!!! All Pakistan needs to further increase its debt. Thank you IMF.
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Mar 28, 2015 09:02am
Don't accept this money, it would bring more debt and nothing else.
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Mar 28, 2015 09:09am
Country eternally indebted to loans specialist and economic genius Dhar ! He deserves a place in guinness book record for getting maximum loans for any country...
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Mar 28, 2015 09:11am
Under the circumstances when China is creating a similar type of bank together with UK and Germany etc., this is not a good news.
Pakistan Govt seems to be in a hurry to win politically.
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Mar 28, 2015 09:15am
Is this different from the earlier programme under which Pakistan is drawing money or another loan? If it is another loan, Pakistan would be taking more than $12 billion from IMF alone. Every one knows that IMF loans are expensive unlike World Bank's and borrowing from IMF makes up almost the entire FX reserves of Pakistan which is quite dangerous as conditionalities would be stiff.
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Mar 28, 2015 09:16am
IMF don't give freebies!. The kids of this & future generation will have to pay the amount with interest!!
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Mar 28, 2015 09:52am
And the story of nawaz continues......
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Mar 28, 2015 09:57am
if authorities invest this IMF's at the right place then it must boost the economy
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Mar 28, 2015 10:16am
Good.
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Mar 28, 2015 10:19am
Pakistan received billion $ Alms from IMF - really great achievement for Pakistan.
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Mar 28, 2015 10:33am
Terrorism, playing in other's hands, no industrial activity, no sufficient affordable electricity, no exports, all imports, perpetual borrowing and begging, poverty and failing economy, resultant perpetual servitude, no future improvement visible, keep up the vicious cycle!
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Mar 28, 2015 10:44am
@Mohammad
Sure... 50% for the rest of the personal (left over) interests to be fulfilled of the receivers and their associates.
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Mar 28, 2015 11:02am
Expect few more palaces to be added to the list in Surrey and Riyadh.
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Mar 28, 2015 11:06am
Wait for a press release from the PM House 'congratulating the nation' on this amazing achievement by PMLN!
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Mar 28, 2015 11:15am
why this dependence on IMF for loans? dont forget , you have to return it back also with interest.
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Mar 28, 2015 11:17am
So now our respected politicians become richer and debt on poor Pakistani increases
Wow all the reason to celebrate
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Mar 28, 2015 11:26am
they should have sent it to swiss bank already cause thats where it would ultimately reach.
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Mar 28, 2015 11:37am
Another Loan??
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Mar 28, 2015 11:38am
giving money to pakistani Govt and expecting they would use it for the good of its people is like giving mutton to a cat and expecting it to take it to the fridge for u.
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Mar 28, 2015 12:29pm
Pakistan received billion $ Alms - really gr8 achievement for Pakistan
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Mar 28, 2015 01:11pm
@ZEESHAN ZEESHAN Dear friend, its a trap. This loan is also to service the debts Pakistan has already taken. Loan to pay the loan. That's what we Indians are doing. Then Nawaz Sharif has no choice. Debt amount is huge monster.Nawaz is one of the great PM 's Pakistan is having. Co operate with him. Be positive , analytical, constructive & abandon your faaltu ego. Things are not beyond repair. Stop the terrorism , anarchy and all of you get together in unity to move forward.
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Mar 28, 2015 01:14pm
As is historically the case in Pakistan, some might be gleefully performing a bhangra that a chunk of money is forthcoming from IMF on which they will lay their hands.
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Mar 28, 2015 01:30pm
And this money would be spend on another Motorway or Expresseay. Not a single penny on health, education, power
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