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Pakistan out of economic crisis but needs to widen tax net, says IMF's Lagarde

Updated Oct 24, 2016 08:58pm

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International Monetary Fund Managing Director Christine Lagarde meets Prime Minister Nawaz Sharif at PM House. ─ PM Office
International Monetary Fund Managing Director Christine Lagarde meets Prime Minister Nawaz Sharif at PM House. ─ PM Office

International Monetary Fund (IMF) Managing Director (MD) Christine Lagarde in a meeting with Prime Minister Nawaz Sharif in Islamabad on Monday maintained Pakistan is now "certainly out of economic crisis", a PM Office statement said.

In the first such visit by an IMF head in several years, Lagarde lauded the prime minister on successfully completing the IMF programme and achieving macroeconomic stability during a short period of time.

Lagarde's two-day visit comes around two months after the international lender cleared payment to Pakistan of a final $102 million tranche in a $6.4 billion three-year programme.

"It is a fantastic step in your journey that you have achieved a better and solid economic position in a brief period of two years," she said, as quoted by the statement.

Completion of the IMF programme reflects very positively on Pakistan, she said.

‘Bring more people into the tax net’

The visiting IMF managing director, while speaking at a seminar later in the day, said: “Despite the marked improvements over the IMF-supported programme, Pakistan still only collects little more than half of what is estimated as a feasible amount [in taxes].”

“This means continued efforts are needed to bring more people into the tax net and ensure that all pay their fair share,” she maintained.

“Currently, these losses amount to more than two thirds of what is spent on the Benazir Income Support Programme. Imagine what you could do with that amount of extra resources.”

Lagarde depicted a bleak state of education in Pakistan saying one out of every 12 children in the world that does not attend school lives in Pakistan.

“I am aware that access to education is a key concern for the Pakistani citizen, a point brought across when I met with Malala Yousafzai,” she said.

“Beyond education, there is also a need to improve women’s participation in the economy,” Lagarde said, adding that “Closing gender gaps in economic participation could boost GDP by up to a third. These gains are non-trivial. Women can be a game-changer for Pakistan.”

Economic growth up, inflation down

The IMF MD said that economic growth has gradually increased, and the fiscal deficit has reduced while inflation has continuously declined in Pakistan. She also appreciated the country’s strengthened social safety nets and tax policy and administration reforms, according to PM Office.

In an oped penned by Lagarde for The News, the IMF MD focuses on four key priorities for Pakistan, including greater economic resilience, higher growth, quality of growth and belief in the global system.

The IMF officially endorses Pakistan’s economic recovery but has urged the country to continue key structural reforms if it wants to consolidate these gains.

The IMF says Pakistan's economic recovery has gradually strengthened and short-term vulnerabilities have further receded on the back of improved macroeconomic stability and progress on structural reforms.

It, however, maintains that the government should prioritise efforts to complete energy sector reforms.

Read more: IMF confirms gradual economic recovery, urges Pakistan to continue reforms

'Stability through reform'

Appreciating IMF’s assistance for Pakistan’s economic recovery and macroeconomic stability, Prime Minister Nawaz Sharif said that the present government has achieved economic stability by pursuing a comprehensive reforms agenda.

"We are successfully delivering on the major challenges of terrorism, economy and power shortages that we inherited from the previous governments," he said.

"We have dismantled the terrorists’ networks and even presently 200,000 troops are deployed in the northern part of our country to completely eliminate the menace of terrorism from our country. More than 24,000 precious human lives have been lost, about 50,000 wounded while our economy suffered a loss of $100 billion in this war against terrorism," the prime minister said.

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Comments (177) Closed



Dr. Khan Oct 24, 2016 02:34pm

IK's rhetoric proving wrong by the day; good steps on the road to development;

ak Oct 24, 2016 02:36pm

So what now, Go Imran Go.....

Umar Farooq Oct 24, 2016 02:38pm

That is called brand NS, Well done PM, Carry On.........

Mahmood Oct 24, 2016 02:41pm

"We are successfully delivering on the major challenges of terrorism, economy and power shortages that we inherited from the previous governments," added the prime minister.

Thank you, we've been enlightened!

Now get out of your well -lit PM house and visit some factories and homes to see the condition of the economy, due to power shortages.

Usman Oct 24, 2016 02:42pm

All Nation should read this article,

Sanjeev Oct 24, 2016 02:43pm

right, i just heard it has surpassed india and has become the fastest economy in world.

Abood. Oct 24, 2016 02:43pm

So thats why imran has decided to bring political crisis.

Gujranwala Oct 24, 2016 02:44pm

Listen Imran Khan & Co, what he is saying.

faisal Oct 24, 2016 02:44pm

But as per IK no, whom to believe.

faisal Oct 24, 2016 02:45pm

Bravo Statement that sums it all:

"We are successfully delivering on the major challenges of terrorism, economy and power shortages that we inherited from the previous governments," added the prime minister."

IMTIAZ ALI KHAN Oct 24, 2016 02:50pm

@IMF until or unless we get rid of IMF altogether we not out of crisis.

Kamal Pasha. Oct 24, 2016 02:53pm

@Sanjeev, Wait and see.Pakistan will definitely surpass India because Modi is taking one step forward and five steps backward.

sebatian Oct 24, 2016 02:55pm

Good new for Pakistan if it is true/

Jason Oct 24, 2016 02:57pm

There's always a crisis in Pakistan. One finishes, another starts.

Junaid Oct 24, 2016 02:57pm

Well done PM and his team.

Ahmed Oct 24, 2016 02:58pm

The truth will be out in a couple of days, hold on folks...!

sebatian Oct 24, 2016 02:58pm

good news if it is true

Mike Oct 24, 2016 03:03pm

Could someone tell me, How much loan locally & international did this govt took since 2013

IMF WORLD BANK ASIAN DEVELOPMENT BANK CPEC - CHINA LOAN BOND SALE

A Pakistani Oct 24, 2016 03:03pm

If IMF is saying that everything is good, then there is something seriously going wrong behind the scenes.

The end is near Oct 24, 2016 03:04pm

Pakistan's economy will not and can not survive the maturity of $50bn in debt this year. Plus 110 million dollars new loan for Pakistan by IMF in last month. Mr. Dar cooks number in such a way that IMF owes more money to Pakistan and believes what he says. But in reality, this country Pakistan will be in deep trouble financially in the next 5-7 years. People should brace for a rude shock!

shazz Oct 24, 2016 03:05pm

once the power project start completing one will see further FDI coming, better relationship with India, better infrastructure, poverty alleviation, better health are pi vital for achieving another milestone !

JARB Oct 24, 2016 03:05pm

IK might think that it is all a conspiracy.

Imtiaz Ali Khan Oct 24, 2016 03:05pm

@Sanjeev India is poor my brother just like Pakistan. Few spots are shinning in India no doubt, though 500 million plus people in India are still are going to railway lines or Seashore to defecate. That is almost 3 times the population of the whole of Pakistan. Pray for prosperity for our greater mother. Love from Pakistan.

Israel Khan IsmailZai Oct 24, 2016 03:07pm

I think the condition of this country and the hardship of common people speak louder than your shallow claim, Ms. IMF. What kind of "out of crisis economy " runs country on loans???

abood Oct 24, 2016 03:18pm

NICE STRATEGY

Oz Oct 24, 2016 03:20pm

This statement is meaningless until the national external debt is reduced to zero and the internal debt dependency is reduced significantly.

Indo-Isreali Nawaz Oct 24, 2016 03:20pm

Our KPIs lag behind targets. We are internally and externally both highly debted. Our Financial leverage is touching peaks. And our foreign reserves are based on borrowings. The government has taken $25,000,000,000 or $25 billions since 2013 and that too our CPEC is not investment but a loan from China which has a cost.

For the time being our working capital is good due to heavy liquid inflows from loans but we will be within a year, facing crisis due to repayments and lack of tax receipts from giants and corruption.

Anybody here could refute my statement?

Mansha Sherazi Oct 24, 2016 03:21pm

Imran Khan should read this!!! He is ruining the country.

LF Oct 24, 2016 03:22pm

@Sanjeev You dont have to wait long to read that news for real

My 2 cents Oct 24, 2016 03:25pm

Pakisatn may be but not its people....

MNC Oct 24, 2016 03:25pm

@Israel Khan IsmailZai

Plz understand that good economy does not mean that every one is delivered his meal at his door step, no matter he works or not.

Awan Oct 24, 2016 03:27pm

@faisal She is the IMF President. Imran Khan is former Cricketer. So who knows better on the economic front?`. Obviously you have to be the Economic head of the one of the top financial institutes of the world.

AHA Oct 24, 2016 03:28pm

Congratulations for across the border. A prosperous nation behaves more responsibly.

AHA Oct 24, 2016 03:31pm

@Sanjeev dear let us wish good luck to Pakistan. A prosperous and progressive country hopefully behaves responsibly.

Awan Oct 24, 2016 03:31pm

@Israel Khan IsmailZai Give me one example in the entire world where any Developed Country is without any external and internal debt?. I am asking for one example from the top 20 economies of the world?. Everyone is becoming an economic expert after listening to Imran Khan ( the cricketer). Do you know even India is under huge debt and it is now reaching 65 of the total GDP ratio?.

KAMESH Oct 24, 2016 03:34pm

@Kamal Pasha. and again 10 steps forward

Gm Oct 24, 2016 03:35pm

So finally Pakistan is out of crisis. No one accepted for last 3 years Pakistan was in crises already.

Masoud Oct 24, 2016 03:36pm

Even in the presence of extreme & widely spread corruption, Pakistan is out of economic crises, had there been no or very little corruption Pakistan would have surely been an economic power in south east asia. Imran Khan is fighting to attain this extra ordinary feat through zero tolerance for all high & low corruption. The nation must support Imran Khan in his endeavour to free Pakistan from corruption. God bless Pakistan and all those who are fighting against corruption.

Delhiwala Oct 24, 2016 03:38pm

@Mike IMF has fallen to such low standards of assessment. Look at the debt to GDP ratio of the Pakistani economy, with no immediate prospects to pay off the loans.

Ahmed Oct 24, 2016 03:38pm

@Oz real inductor is foreign debit to GDP ratio and Pakistan is better than India and also much better than many developed countries with respect to this indicator.

We should come out of this negative mindset. India's total foreign debit is 8 times more than ours and as a result they have higher foreign debit to GDP ratio but they do not critics thenself that much.

Khan Baba Oct 24, 2016 03:40pm

@Mike it doesn't clear the gov from the fact that they have created a huge mountain of debt... and Dar has simply followrd IMF demands to recieve final payments for further loans.

Ali Oct 24, 2016 03:41pm

Excellent work Mr.Nawaz. Well done PM and the team.

hyder alvi Oct 24, 2016 03:42pm

This is the development which is making IK anxious. IK was thinking that NS is like other parties and will not do any work. But IK was wrong and he is out on streets to do dharna against development

Indo-Isreali Nawaz Oct 24, 2016 03:43pm

@A Pakistani

This statement from IMF comes on the request of Ishaq Dar to IMF chief when the corruption campaign against corrupts is at its peak.

Yaqoot Oct 24, 2016 03:43pm

Exports are declining every year and IMF says we are out of a crisis? Do they think we r naive?

Hassan Peshawar Oct 24, 2016 03:43pm

So taht is why IK was doing Dharna. To stop development as he was made aware of progress

Akram Oct 24, 2016 03:45pm

@Sanjeev "right, i just heard it has surpassed india and has become the fastest economy in world." Inshallah, very soon.

Karachi time Oct 24, 2016 03:45pm

IK thinks that blaming others will bag him votes. well people vote on progress and work not allegations maker. IK is out for Dharna despit Supreme Court for Panama. This explains that IK is on a bigger role. now media is independent its not easy now to call others for iterruption Mr Khan. Go get a life and work for KPK.

Nadeem Haripur Oct 24, 2016 03:47pm

We wait for that day when some renowned international agency admire KPK. But due to no infrastructures, no industry the KPK is left to no where. I am embarrassed that I voted IK in 2013 but will not repeat mistake in 2018

ilyas Oct 24, 2016 03:47pm

@sebatian so you think she has been bribed to issue this statement?

Syed Shahzad Bukhari Oct 24, 2016 03:49pm

Credit goes to the PML-N Government for this accreditation of economic progress by IMF. Political parties, including PTI should support PML-N to complete their tenure so the promise made with the people by PML-L should be completely deliver this time otherwise they will have excuses of past for not completing their tenure.

Islamabad morning Oct 24, 2016 03:49pm

Loans are necessary for project financing and every company resorts to those loans to finance new projects. Same is with pakistan, as govt did take loans to finance projects ans we are seeing hundreds of new projects in Pakistan. Lets not forget that KPK govt also applied for 75 Billion loan? why because they want to use in development but PTI too late too little

Asad Hussain Oct 24, 2016 03:51pm

IMF is praising because we are doing great job for them. govt actually feeding IMF with our money

Rafay Oct 24, 2016 03:54pm

Really !!!! by "start" building the road ... wow. Btw why IMF wants us to be out of the eco crisis - they are making million out of us.

Dori Oct 24, 2016 03:54pm

this is just because DAR accepted the IMF conditions for the loan, no other country would accept so IMF is happy Doing Profitable Business with Pakistan ... India or Srilanka would not accept the conditions.......

Amer RAO Oct 24, 2016 03:55pm

Are you sure?

Rawalpindi Oct 24, 2016 03:56pm

It is difficult for Pakistan to make economic progress with the current citcumstances.

Nadeem Oct 24, 2016 03:57pm

It's because we got the loans from IMF, they 'like' our economy..2.7 trillions of loans in this fiscal year and still no electricity, poor health facilities, poorest business support, and u r saying its 'stable'?? We are not fool..

Nadeem Oct 24, 2016 03:59pm

Economy out of crisis and into a bigger begging bowl..

Dori Oct 24, 2016 04:00pm

@Nadeem well said IMF got good business deal with Pakistan which is not good for People of Pakistan..

JOYDEEP.PUNE Oct 24, 2016 04:01pm

@The end is near - don't be so pessimistic. Let the Govt do its job. You do yours.

JOYDEEP.PUNE Oct 24, 2016 04:05pm

@Indo-Isreali Nawaz - There is a limit to bias, the answer to loans peaking is more hard work for the common man and more taxes overall. Simply said but - the hard truth. Everyone has his conspiracy theory in Pakistan and you have a loud one.

Vague Buster Oct 24, 2016 04:07pm

Mr. Khan should stop hurdling Nawaz Sharif,

natey Oct 24, 2016 04:10pm

uae dubai was even poorer than india n pak back in 60s..india pak ppl are hardworking...than them...we can surpass arab world once their oil finishes as they dont knw what job they will do..they just depend on oil..there will be one day when arabs will come work in india pak n bangladesh...

vivek Oct 24, 2016 04:21pm

@AWAN You brought India in this discussion so look at India's external debt to Total GDP ratio, external debt to forex reserve ratio, currency exchange value and finally GDP growth rate.These figures are much better than Pakistan and cannot be compared at all.For example India's external debt to forex reserve ratio is 120 % while in Pakistan's case it is 300%.

Shaikh Oct 24, 2016 04:23pm

The more loan you get from IMF, more they praise you. Nothing to be proud of. Her statement resolved the energy crisis? corruption? nothing will change, just more loans from IMF....

Punjabi Oct 24, 2016 04:23pm

Great news ...Pakistan is progressing under Nawaz !! Nawaz taking Pakistan to bright future ...

vadula61@gmail.com Oct 24, 2016 04:25pm

Stable, democratic Pakistan is the best bet for India. Both the countries should honour cease fire agrement and return to normalcy

Bangalore Boy Oct 24, 2016 04:26pm

I remember your IK had met our AK (Arvind Kejriwal), Chief Minister of Delhi, when he was in India during the T20 WC played here. AK is a Dharna expert in India whose day starts and ends with chanting the PM's name and blaming him for all the problems in the country.

Human first Oct 24, 2016 04:28pm

Pakistan can really save a lot by reducing defence budget..

Kunal Oct 24, 2016 04:29pm

@Kamal Pasha. And the reasons for 5 steps backward as per you????? Why dont you enlighten us Kamal sahab..

vadula61@gmail.com Oct 24, 2016 04:29pm

@Kamal Pasha. India is growing at 7.5% while Pakistan is growing at 5.5%, Size of Indian economy is 2 Trillion USD, while that of Pakistan is just 200 Billion USD, how Pakistan will surpass Indian economy? For your information, during Modi's regime, Indian political system is more stabel, and undertaking bigger reforms

vivek Oct 24, 2016 04:30pm

@AHMED brother your information about India is completely wrong. The current foreign debt of India is $480b and GDP is $2.384 trillion which gives a ratio of 20%.While Pakistan's current external debt is $ 74b and GDP is $288 b which gives a ratio of 26%. Also do not forget external debt to forex reserve ratio which is 120% for India and an alarming 300% for Pakistan.

Ali Oct 24, 2016 04:31pm

I would like to point out that it is in the best interest of IMF to see people like Nawaz Sharief in power so that they can continue to lend them money at extremely high interest rates. IMF knows that IK will not bow down to their money, hence they made this statement and praised Nawaz Sharief in the wake of recent tensions between PTI and PLMN. As long as third world nations stay buried under massive debt, IMF will continue to support such Prime Ministers. Do you really believe the IMF cares for the people of Pakistan? All they want is to buy our nation and keep them under control with these loans. Think about it.

Iftikhar Husain Oct 24, 2016 04:31pm

The trouble is not over yet long way to go.

Israel Khan Ismailzai Oct 24, 2016 04:32pm

@Awan

Agreed, every country is in debt, but no developed country runs on loans.

Shahzad S Iqbal Oct 24, 2016 04:33pm

we do NOT need a certificate of approval from anyone about our economy other than ordinary Pakistanis on the streets and they know how corruption is holding Pakistan back from realizing its potential....

Habib Oct 24, 2016 04:33pm

Real indicator of economic growth of any country is how its currency rate is reacting to it. PKR to US $ is still at 104 to 1.

Leo Oct 24, 2016 04:36pm

Well done Mr. Nawaz Sharif. He and Zardari are the true silent workers. Zardari gave a stable 5 year run for democracy

Leo Oct 24, 2016 04:37pm

@natey : dreams are not costly, you are free to dream.

Israel Khan Ismailzai Oct 24, 2016 04:38pm

@Awan

Enlighten us " GENIUS".

lafanga Oct 24, 2016 04:41pm

Please can you provide us Pakistan's external debt figures ... what it was in 2013 when PMLN took over and what it is now? What a timely visit by the IMF chief just before a IK dharna to provide some support to Nawaz Sharif.

M. Siddique Oct 24, 2016 04:41pm

Good news. Let us hope this economy will be able to pay off these loans. We sure also hope that no one has lined their pockets with these loans

lafanga Oct 24, 2016 04:42pm

@Umar Farooq "That is called brand NS, Well done PM, Carry On........."

Do you know how much the external debt has grown since PMLN took over in 2013? Check it first then perhaps you will cry instead of being cheerful.

Jazib Oct 24, 2016 04:42pm

Once the oil prices starts to climb we are going to enter in to balance of payments crisis as our exports are falling & imports are rising. In the next 5 years we may see another crisis brewing as we have to pay these debts.

Nangialay Khan Oct 24, 2016 04:45pm

Maybe Only Government Is Outta Crisis,,, While Public Is In Severe Crisis.

Cool dude Oct 24, 2016 04:46pm

@lafanga Please don't bring reality in the picture! You bring people down!

Vikram Oct 24, 2016 04:49pm

Good news for us Indians.. Stable Pakistan is good for us..

Changez Khan Oct 24, 2016 04:51pm

Well done PM Nawaz. Congratulations.

Shoaib Rehman Oct 24, 2016 04:51pm

Way to Go PM. God bless you. Keep working for the progress of Pakistan.

M. Malik Oct 24, 2016 04:53pm

The timing of her visit is highly suspect.

And considering that Pakistan has willingly accept tougher lending terms to secure more loans, hardly surprises me that IMF chief is so generous with her praise of Pakistan, She has to be seen as effective, in control and delivering results - for IMF and to continue in her job in Washington for the second term. Ishaq Dar on the other hand, wants to boast about progress to help NS secure another term as PM.

Taimur Oct 24, 2016 04:57pm

I am not a supporter of PLMN but indeed goo work done to improve security situation and we can see improvement in some of the economic indicators.

Laughing Buddha Oct 24, 2016 04:59pm

@Imtiaz Ali Khan ... Sir, every Super Power and Rich country has a lot of poor and homeless, I saw homeless beggars in USA (many cities), In UK / London, In Paris (many Algerians and North Africans beg there and sleep on footpath), Saw a Saudi Documentary showing abject poverty, in China they wont let you film poor pockets of large metropolis, and then India too has poor and beggars .... this is just one part of the story where Pakistan is not different .... but Pakistan and India are definitely different on the other part of the story .... the shinning part.

Sara Oct 24, 2016 04:59pm

Well done Nawaz Sharif. You are the best.

fynGuru Oct 24, 2016 05:00pm

IMF helping NS in crisis....Obviously it suits to IMF to lend PAK and keep it under its rein and NS is good choice for this task.

Laughing Buddha Oct 24, 2016 05:02pm

@Vikram ... Vikram I agree 100% ....

Kalim83 Oct 24, 2016 05:04pm

Message from PM office not her I guess , let it be not a mockery as from the magazine declaring DAR best finance ministers..

nadeem Oct 24, 2016 05:04pm

add that to her comment ,,,, NOW WE WILL DRAIN IT ONCE AGAIN !!!!

T Khan Oct 24, 2016 05:04pm

The comments below refer to Imran Khan giving the wrong comments on economy; however, our own economists have said the same. Let's not forget that IMF is a credit shop and Pakistan probably the best customer IMF have ever had.

Hasan Mehmood Oct 24, 2016 05:05pm

Here follow the debt-to-GDP ratios of the most heavily indebted countries:

The United States (102.98 per cent), France (95 per cent), Italy (132.30 per cent), India (66.10 per cent), China (41.06 per cent), Japan (230 per cent), Spain (97.70 per cent), Netherlands (68.80 per cent), Germany (74.70 per cent), United Kingdom (89.40 per cent), Brazil (58.91 per cent), Russia (17.92 per cent), Canada (86.51 per cent), Australia (33.88 per cent), South Korea (35.98 per cent), Portugal (130.20 per cent), Belgium (106.50 per cent), Singapore (99.30 per cent), Austria (84.50 per cent), Denmark (45.20 per cent), Sweden (43.90 per cent), Switzerland (34.20 per cent), Turkey (33.00 per cent), Hong Kong (32.00 per cent), Norway (26.40 per cent) and Luxembourg (23.60 per cent).

Zahid Ali Oct 24, 2016 05:07pm

What a progress PM ....open PANAMA papers

Syed Oct 24, 2016 05:08pm

US$ 14 trillion borrowed in the last three years from IMF!! If she will not give a certificate of excellence to NS than who will ?

Roy Oct 24, 2016 05:09pm

What about the rest of ever-growing debts?

Mahmood Oct 24, 2016 05:11pm

@Hasan Mehmood - These statistics are meaningless unless you put them in the right context.

  • Size of the GDP
  • Strength of the Economy
  • Terms of their debts
  • Debt service ratio.

Also, oddly, this list omits figures on Pakistan!?

Syed Oct 24, 2016 05:19pm

@T Khan well said!!

kaliraja thangamani Oct 24, 2016 05:21pm

Credit goes to PM and his FM.

lafanga Oct 24, 2016 05:21pm

@Jazib "Once the oil prices starts to climb we are going to enter in to balance of payments crisis as our exports are falling & imports are rising. In the next 5 years we may see another crisis brewing as we have to pay these debts."

But the current PMLN lot doesn't care about next 5 years. They just want to get relected in 2018 to keep the gravy train going.

Syed Oct 24, 2016 05:27pm

@kaliraja thangamani of course and the credit to take US$ 14 trillion loan also goes to them!! Well done!!

The end is near Oct 24, 2016 05:32pm

IMF will never let Pakistan stand on its own feet. We need to send the IMF out and only then our economy will boom otheriwse Pakistan will keep sinking in IMF debts deeper and deeper and even more with each passing day.

Hashmat Ullah Qureshi Oct 24, 2016 05:33pm

IMF has earned much money from us in return of interest,

Z Khan Oct 24, 2016 05:34pm

@Sanjeev No body is saying anything like that. Why you all have to be so jealous and spread hate. You should be shameful!

Anirudh Oct 24, 2016 05:35pm

Understand this fact. An international delegate visiting any country will always speak good about the country in front of the media and will praise the country and its leadership. I dont know what discussions but have happened in closed door. Conclusion: If all was good in Nawaz's leadership then there wouldn't have been a public uprising and discontent among common people

Truth Oct 24, 2016 05:37pm

@Syed Don't be ridiculous! Nobody borrows $14 trillion in three years, not even the mighty US Economy can sustain such borrowing in just three years! Nor does the IMF or World Bank have these kinds of fund to lend to ANYONE!

I don't know which thin air you pulled this number from! Bet you don't even know how many zeros are in trillion!?

Even since the birth of Pakistan, the combined GDP hasn't equaled $14 in 70 years! Do you think anyone,even if they had the funds to lend $14 trillion in just three years - or roughly $400 Billion, every month, on average??

Kashif Oct 24, 2016 05:38pm

We all know Nawaz govt is corrupt. But unlike Zardari and PPP he has done some good to the country. He will certainly win big in 2018.

IMTIAZ ALI KHAN Oct 24, 2016 05:38pm

@Laughing Buddha Dost. I'm not arguing with anyone just diverging from everything but logic and common sense. India is our bigger brother that's the way I think, but at the same time, I can't even imagine comparing poverty level of US/Western and India.

Jawad Oct 24, 2016 05:40pm

@lafanga Ji who cares about forecasting. Though I fully understand your concern. But such scenarios are called dilema of economic development. For our PM two thumbs up. For IK show some results in your province.

imtiaz syed Oct 24, 2016 05:43pm

Why do you people believe IMF? If some has a little mind he will think for a moment that why we apply tax rules on the dictation of IMF?

imtiaz syed Oct 24, 2016 05:43pm

@IMTIAZ ALI KHAN thats the point. You said it perfectly

Neer Oct 24, 2016 05:44pm

I can see a ray of hope for pakistan. Congrtars neighbour. For heaven sake understand fantasising kashmir shall not yield anything. Neither enmity with India. Get your priorities straight. Get mis-guided youth back, to propel up the economy. We need education and Job. Not F16s. We need investments not Charity. Gudluck.

TM Oct 24, 2016 05:47pm

Recently Finance Minister Mr Ishak Dhar was also awarded the best finance minister award by IMF. Now Our PM Nawaz Sheriff proved as the best PM in financial reforms. Great Job and good for Pakistan.

iffi Oct 24, 2016 05:48pm

@M. Malik Bhai please come out out of these conspiracy theories. Dates for such high level visits are finalized at least six months prior to actual engagements. Atleast we can say that this meeting was decided way before IK's insane lockdown call

Zack Khan - Pathan Oct 24, 2016 05:52pm

You guys are really buying this? IMF is a department of US and US wants Nawaz regime to do as they please! The only true indicator of economy is interest rate and the job market besides GDP and many other factors! Are there jobs in Pakistan ? My brother was chief architect in IT department of a major Saudi Bank and one of his project was to not allow any donations to Imran Khan's account! Believe me foreign powers do not want Imran Khan to lead as it is not in their self interest! My dear brother and sisters please open your eyes!

Zack Khan - Pathan Oct 24, 2016 05:53pm

@A Pakistani I totally agree with you!

Zack Khan - Pathan Oct 24, 2016 05:54pm

Economy is good when people can find job! Are their jobs....!

Zack Khan - Pathan Oct 24, 2016 05:54pm

How much of a loan did we paid as a nation!

Zack Khan - Pathan Oct 24, 2016 05:56pm

@JARB I am sure it is a conspiracy! Did we open more universities, hospitals, jobs? So how has economy improved....!!!

Jawad Oct 24, 2016 05:57pm

@iffi so what is the conspiracy of IMF. To create a rift between Army and Nawaz government. You may be right. Sometime I do beleive in conspiracies when I look what is happening in Middle East and who created ISIS. Be very very smart. Supper powers are ruthless. Be unite and Army and Politicians be on one page. Stick together. Love Pakistan

Zack Khan - Pathan Oct 24, 2016 05:57pm

IMF will take Pakistan down!

O\ Oct 24, 2016 05:57pm

@Ahmed Its good you pointed this out. I should burn my degrees and must not think of my years of experience working in Europe.

A correction perhaps is required, that I am not negative in my post and that I am pointing out a fact, that no matter what capitalist economic indicator you use, its the actual money in your pocket that counts. Pakistan's story is the same. Think of it as an individual, who has borrowed money to lots of people and also has loans beyond its means of repayment.

The only time when Pakistan 'the individual' will feel economic properity, is when it has repaid its loans completely, has recovered its internal bad debts without writing them off for politicians and by having consistent income which it can use to build its own infrastructure (house) without asking for a borrowed penny.

Aniket Rastogi Oct 24, 2016 06:08pm

If she really means it, I wish congrats to my neighbour.....Keep that growth pattern up year after year. We, India and Pakistan, both need to focus on development issue and make the best of our resources.

Zack Khan - Pathan Oct 24, 2016 06:10pm

The unemployment rate is very important and measures the number of people looking for work as a percentage of the total labor force. In a healthy economy, the unemployment rate will be anywhere from 3% to 5%. Do we have employment of 95%?

Aniket Rastogi Oct 24, 2016 06:11pm

@Sanjeev Lemme correct you brother, pakistan didn't surpass anyone in terms of economic growth. I think what you are referring to is Pakistan stock index performed the best in the entire south asia region which is remarkable achievement.

Zack Khan - Pathan Oct 24, 2016 06:11pm

Since the health of the economy is intimately connected to consumer sentiment as can be seen by indicators such as retail sales, politicians prefer to spin data in a positive light or manipulate it such that everything appears rosy. For this reason, to accurately characterize the state of the economy, you must rely on your own analysis or perhaps the analysis of others without a particular agenda.

Baloch Oct 24, 2016 06:18pm

@Kamal Pasha. Do you feel that economic problems has been resolved in Pakistan? How much do you pay electricity bill per unit tell me

Messanger Oct 24, 2016 06:23pm

@shazz all these power projects are obsolete in the world; so china is dumping these coal factories into Pakistan. Moreover, tariffs will be higher. So think for a minute what is coming in future, good or bad.

Khezar Oct 24, 2016 06:35pm

In the last quarter of 2014, Pak met IMF performance criteria.Among others,one provision was that the govt should not borrow from the State Bank of Pakistan.Our 'competent' govt played a trick.They borrowed from commercial banks and these banks in turn were supported by the SBP by injecting a huge chunk of money into the financial system.This is how they perform 'well'. And by the way what about the increasing circular debt despite low oil prices in the international market?

sid Oct 24, 2016 06:38pm

just hope its not a situation where one loan repays another and so on.

Abdul Shakoor Narejo Oct 24, 2016 06:51pm

No doubt the current central government have taken revolutionary steps for the economic recovery of Pakistan. Hope to see the same government at center in 2018 elections. Well done Prime Minister and your team. Keep it up. We are proud of you.

Fani Oct 24, 2016 06:53pm

Oh...really...Ms IMF...???????? A good move by Sharif & his team to counter Imran Khan...although I am not a supporter of Mr. Khan, I want to inform Ms. IMF that in June 2016, Mr. Dar claimed in his budget speech that more than 40% of Pakistani population are living below poverty line...and the ground reality is more grim than that...!!!

Omveer Oct 24, 2016 06:53pm

Congrats. Where are the figures of growth of economy? Let's hope it's for real and sustainable growth and not planted propaganda! Good luck

George Oct 24, 2016 07:04pm

@Sanjeev Those days are becoming a reality in a matter of a short time.

Arsalan Oct 24, 2016 07:40pm

@Mahmood And the really funny part, Pakistan suffered "USD 100B in financial losses", what an overblown and exaggerated no. just to prove his point!

Nomi Oct 24, 2016 07:43pm

Public debt has increased to around 67 percent of gdp as compared to around 63 percent when the programme started. Hats off to IMF for making our future generations indebted.

Rizwan Oct 24, 2016 07:47pm

Is this accurate or we should take it with the same pinch of salt where the Finance Minister was awarded by IMF.

Syed - Oct 24, 2016 08:22pm

Is it all true?

Dhilo Oct 24, 2016 08:45pm

If our economy is improving,then why unemployment is rising,exports is declining,internal and external debt is increasing day by day,and why we are taking loans and privitising our institutions?

John Fawad. Oct 24, 2016 08:49pm

IMF has informed pakistan ppl that by june next year inflation rate will double this year inflation rate at 5.6%.if all the society continued to keep the status co of corruption criminal and culprit attitude I am sure IMF has no wrong prediction. STOP corruption stop criminal &culprit desires, save your next generation. 60%ppl here in country dying of cancer due to 10th degree fake poisonous medicine in the marcket, 30%ppl dying of fake fertilizer and detergent powder mixed milk,chemically poisonous oil &ghee.tea in form of wood saw dust coloured with dead animals blood,red pepper is made of bricks ground into powder. I don't want an administrator post but find only a dozen, hand full of people like Mr. NASEEM SADIQUE a pcs officer,you can make Pakistan heavens a jannah.I request CM Shabaz Sharif to find few fuch persons and see the change in Punjab.In my observation he is the most honest patriot brave and fair person I have ever come across in Pakistan, at my age of 50 now.

kumar Oct 24, 2016 08:50pm

Improve internal security, wipe out terrorists. Spend on education, this will solidly invite FDI into Pakistan continuously over years. Then foreign debt won't be an issue at all.

Faisal Oct 24, 2016 08:55pm

@Sanjeev India holds the distinction of having the most number of poor of the world – a super poor nation! Consequently, South Asia has become the world’s biggest center of extreme poverty. On the World Bank’s extreme poverty line of 1.25 dollars a day, there are roughly 500 million extreme poor in South Asia, followed by 400 million in sub Saharan Africa. The chart below clearly shows the global poverty trends since 1981.

I it is time that people in this region start thinking out of box.

Bangas Oct 24, 2016 09:11pm

Never ever trust IMF , equally involved corrupting Pakistan. Infact IMF always need corrupt leaders to achieve their goals.

kifayat khan Oct 24, 2016 09:14pm

@Mike

ISLAMABAD: In its three-year stint, the PML-N government has obtained $25 billion as fresh foreign loans in addition to borrowing Rs3.1 trillion ($30 billion) from the domestic market for budget financing, said Ehtesham Rashid, Director General of the Debt Office at the Ministry of Finance Wednesday.

In dollar terms, the government’s total domestic and foreign borrowings amounted to $55 billion during the last three years.

Jar Oct 24, 2016 09:19pm

Would be interesting to hear Imran Khan's spin on this message from IMF.

Afzal Khaliq Oct 24, 2016 09:22pm

IMF chief doesn't know that the government is just taxing the already taxed. The government has instituted a minimum 8 of revenue yes revenue tax even if a company makes loss. In addition to widening tax net please rationalise tax and remove such illogical tax on the part of FM Dar.

Syed Oct 24, 2016 09:42pm

@Truth take it easy and be respectful. No need to get hyper. It was a typo, it's US$ 14 billion.

Goga Nalaik Oct 25, 2016 12:05am

Total amount borrowed from IMF from 1947 to 2013 = 6000 billions Total amount borrowed from IMF from 2013 to 2016 = 22000 billions

You call it progress??

Zak Oct 25, 2016 12:39am

IMF is most impressed by Pakistan's economic performance. Others were disappointing in the region.

shami Oct 25, 2016 12:45am

Those who are scolding IK and taking credit of this "achievement" could please standup and answer who will pay back 6.4Billion$ plus others taken from different sources?

PrasadDeccani Oct 25, 2016 12:57am

@Sanjeev

Cool down guys.

PM Sharif made a good move. Appreciate it.

Captain D Oct 25, 2016 01:39am

Good work PMLn. Continue with the good work and let haters cry. We will vote for you in 2018. Ex-PTI

Akhtar Oct 25, 2016 01:43am

The PM should pay his fair share of tax first.

Zak Oct 25, 2016 01:50am

People falsely promoting Nawaz govt without knowing the facts that how corrupt is IMF itself. God save Pakistan from IMF loans.

Ahsan Oct 25, 2016 02:06am

Stop lying ! Look for a way where you can work out the economy without IMF loans

Khwarezmi Oct 25, 2016 04:23am

Wealthy people like Nawaz Sharif and Shabaz Sharif do not pay taxes. Offshore companies in Panama and business interests in India are more important then Pakistan and her poor people.

Atsul Oct 25, 2016 05:07am

What a scam... keep getting more loans from IMF and world bank, then same politicians steal the money and shove it overseas back to the same countries leaving the nation to pay the interest on these loans though higher and higher taxes.

Wake up people if economy is doing so great why does govt. keep imposing new taxes. IMF purpose world over is to give as much loans as possible and then ENSURE/ENFORCE countries continue to pay taxes... thus more taxes.

Simple way to find the truth... is the national debt growing in shrinking?

FYI.. IT'S GROWING.

Mani Oct 25, 2016 05:09am

So the govt. says all is good and dandy so how come the citizens don't find a difference in their quality of life i.e. better jobs, cheaper products, a bigger middle class, lesser taxes on the poor etc.

s kumar Oct 25, 2016 08:54am

the main issue with IMF is that they prescribe almost same steps for all countries , i.e. reduce budget deficit , increase tax , reduce subsidies , start trade and industry reforms (that eventually benefit developed economies ) etc.. Admittedly some steps are standard , but not all, due to the sub-continent's different profile, partial development and status of social development and democracy . So it is a bitter pill for the political leadership but no guarantee it will be a success.

Ali Daud Oct 25, 2016 11:37am

How about milk price? How about Rotti Price? How about Rice Price? How about dalein price? How about Fruits price? How about public transport karaya? How about... We are not that dumb so that we are not able to understand a publicity stunt.

Himanshu Oct 25, 2016 02:58pm

In short its a massage of appreciation with a kick for more taxes implementation.

IMF has sympathy for the economic condition of people, government is doing good job despite of not even a single improvement in life Govt. is implementing more taxes.

aslam shaikh1 Oct 25, 2016 03:01pm

IMF trying best to keep its best client.

aw Oct 25, 2016 03:52pm

@Usman Well, live in fool's paradise. All nations know very well about where we are heading to as far as economy is concerned. World Bank, ADB, etc they all want Pakistan in deep sea of crises / loan burden till it reaches point of no return-capacity of loan

Asad Oct 25, 2016 04:01pm

Yes believe them they are part of all this! how can an honest STATE forget corruption,and move forward, can you forgive a theft in your house, let the theif go without any accountability. and in future many more will do the same, will be thinking they will get approved by IMP. who are they to give us certificate of transparency. wake up people follow anyone you love or believe, but don't get trapped by any personality without testing them against your faith.

A Sheikh Oct 25, 2016 04:44pm

"international lender cleared payment to Pakistan of a final $102 million tranche in a $6.4 billion three-year program" So why are we still getting loan from IMF?????

umair Oct 25, 2016 04:57pm

@faisal don't believe anyone ... read the facts for yourself. Go to the ministry of finance website and read the economic survey.

ss Oct 25, 2016 07:30pm

The talk of widening the tax net does not find much resonance on the sub continent. And the reason is not far to seek. Everywhere, the citizens pay taxes and the state delivers public services. In a situation where the state fails to keep its end of the bargain, the moral basis for taxation gets eroded. If I am required to pay exhorbitant school fees because government schools are no good, if I have to pay high charges for healthcare because the government hospitals fall way short of minimum acceptable standards, if I have to pay for my diesel generated electricity because the government cannot supply adequate power, if I have to pay for private security because the government has utterly failed to ensure the safety of citizens, then it is not clear why I should be required to pay taxes.

Ganesh Oct 25, 2016 09:38pm

Everyone looks so happy about the news. But the actual problem starts there.

  1. IMF wants PAK to increase taxes.
  2. NO More funding from IMF or decrease in Funding from IMF.
  3. This is a baby step from US to move away from PAK for not throwing money at it.
Muhammad Ali Hussain Oct 25, 2016 09:54pm

Thinking that IMF chief is sincere to Pakistan is foolishness. She is face of exploitative forces. It is our bad luck that we are forced to borrow from them.They should not be believed.If they are sincere to Pakistan then they should write off these loans.

Mahad Oct 26, 2016 09:46am

pretty much everything is taxed now, even school fee are taxed now, how much more should it be "widened"?