IMF Loan will be the Real Game Changer

Interesting times to follow!

It will be great if the us refuses the loan.

Good move by US

It makes sense to me. IMF needs to know if Pakistan will be able to pay their loan.

My instinct says pakistan will be granted IMF bailout loan but at the heavy price and conditions of the US by looking at the the way FM qureshi staying behind in the US after the UN meet and his extensive meetings with US officials. He must have begged and pleaded to the US for this loan and have agreed to all of US preconditions. There is no doubt about this.

New Pakistan is looking for loan from China, IMF, Saudi Arabi, grant from WHO, UK for medical facilities, water from India, subsidies from EU. It’s doing everything to gain funds except working hard to improve its own industry and education standards and reducing unnecessary expenses like PIA.

China finding it increasingly difficult to face up to an aggressive USA in the trade and fiscal front. There is littlke doubt that China wants Pakistan to be permanently indebted to them so that it becomes for all practical purposes a Chinese colony which they can control, also in terms of preventing recruitment to insurgencies within Chna

Ask China to write off the debt for an old friend.

Political leaders upfront, do not hold the real power. That is a problem of loan or aid utilization.

Looks like much before CPEC operations on , Pakistan already in debt trap. Very tough situation for any new government

Pakistanis know very well that IMF loan cannot be used to pay political loans.

IMF is controlled by US, and it’s tax payers money. Pakistan will face another hurdle for 13th loan, an unlucky number.

Most difficult times ahead for Pakistan. US will do more instead of telling Pakistan to do more.

US process will take more long then ever reviewing Chinese loan, with “if’s and “buts” .

The plan by China. Extend loan and get it re paid by loan from IMF is simple strategy

Washington and the IMF had already made their position clear on this.

Another decline of rupee value in the offing.

IMF loan will be peanuts towards the Chinese debt of Pakistan. And now US will definitely put hurdles.

Pakistan Rupee will fall further. By the end of year 2018 will mark 200 Rupees against US dollar.

Statecraft by the masters.....

“China stepped forward to support Pakistan’s development at a time when foreign investment had dried up and economic activity was being crippled by energy shortages and infrastructure gaps”. _ That does not make Pakistan more credit worthy. The Palestinians need more help than Pakistan. When a poor man goes to the bank for a loan he doesn't get one. When the rich man goes to the bank for a loan he is given one because his credit rating is good and he has collateral.

Do you still want this loan?

China's idea to earn high interest for its unused reserve money through Pakistan as proxy has hit road block.

Chinese loan payments don't even start till 1921 and the payment will start only with a meagre amount of three hundred and fifty million dollars. Chinese loans are being used for infrastructure development projects which will generate economic activities and generate money to pay off the loans. IMF is only pressuring Pakistan to give up CPEC.

US hasn't really been a good friend to Pakistan. It's better of them not to point fingers at us. And with the current America first, it's only US who will try to take advantage of the situation. Everyone knows China is only about money. We have to be careful. About time Pakistan focused with a made in Pakistan for Pakistan government.

Another blow.

Can Ms. Nauert kindly inform when and how the US intends to repay the Chinese loan itself?

How about the US herself owing 1.8 trillions $ to China in debt? IMF and FATF are used as political tools by the US alone despite there are other member countries. Look what they have done to Turkish economy over a pastor.

IK will have to deal with Trump this time.

Finally the ground realities will dawn upon the Pakistan authorities who rule this country. The CPEC can get us out of the US control and there is no way they will let us go free from their hegemony. They would do all in their power to hurt us and damage all means to block our way out of their control.

Any loans given by the IMF should come with the condition that those funds will not be used for debt servicing of Chinese loans.

The Chinese loan is being called an investment. It is a loan which has to be repaid with interest so please stop calling it an investment. But, yes you may call ir a Pakistani investment done by taking a chinese loan.

Sunlight is the best disinfectant.

From so called investments to loan debt

Pakistan will soon plunge further into the Chinese CpEC debt.

Pakistan made bet on the wrong horse. America is still much more powerful than China in the international arena.

This is right move

Go ahead and pay them more loan with more interest rate.

US time and again showing her face and using the very last weapons she has. Hope pakistan gets out of this satuation, and we will Inshallah. but this will prove irreversible lose for the US in this region, and be the reason for exit from this region. Pak did great job by not trust US through out.

Chinese Debt and K obsession has brought Pakistan to this situation.

Pakistan has trapped between fight of two big bulls.

Debt shall be contracted to increase the revenue and must relate to repayment capacity of a person, firm or country. If done beyond capacity, it is surely a recipe for disaster. Our truly friendly country, should waive off what we can not repay.

This going to be trough this time especially what Imran himself has been saying about. That's why they always say ... Never say never.

I hope Pakistani leadership stops living in denial and tackle the problem heads on Some bitter pills have to be taken to fix the mess and have to be remembered only yourself is your own Iron brother.

Whole world has been saying that it is a debt trap but pakistan still went ahead with it and now paying a huge price for the mistake! Malaysia recently cancelled billions of dollar worth of chinese projects because they realized it is a debt trap!

This is called Karma! It's like boomerang! Nonetheless Pakistan can still have hopes from China to step up and provide relief in the tough time. It's not cricket Mr Khan, it's politics and that's too at the world stage. All the best for roller coaster ride ahead...

Sensible decision by US.

Very good move. I wonder Iron brother not coming to rescue you. Chest thumping one stuff, helping in need is true friendship.

amazing..!!!

This time money will not be easy. IK should recall his speech on the container that "when I will come to power I will not pay foreign loans, so do not give money to NS government".

Geo-political moves to ensue in the next few weeks as US will be looking for advancing its objectives in the region, which I feel is inevitable at this stage given the fact that they retain absolute control over IMF. Smart moves and sustainable reforms are needed for Pakistan to extricate itself out of this economic mess. The next move from China will be closely watched by the international community.

Let cpec complete Pakistan will review chinas loan to US

This will help people of Pakistan to know the terms and conditions of CPEC.

This will anger China. Sorry to see Pakistan in such a delicate state. China will obviously seek Gwadar port for 99 years lease which will cause a huge blow in Sino pak relationship..

@Shukralla Why go to IMF if you know US will poke and create hurdles.Use other sources.

Lenders always have upper hand be China or IMF/US.

Get money back from zardari sharifs and their corneas, or hang these few ppl so no more loop hole in futuremoney laundering, they have embalmed more than 20 billion dollars in last 10 years.Govt. of Pakistan must het it back at war strategy. As soon as possible before these culprits run away to UK.

Seems like US don’t want any Bad Debts in future.

I think we need to have faith in PM he promised to steer us through this and I am sure with or without US support he can do it. I think it will be embarrassing if US comes down to looking at our debts and if they decided not to.

@Shukralla since US is a major contributor in IMF, they have full right to monitor the misuse of their money.

Borrow from China or KSA - their interest rates and terms are probably better than IMF. And less interference. Couple with HARD austerity.

@Shukralla "Why is US poking its nose here too?" - Because US is the biggest shareholder of the IMF by far and the US government is obligated to make sure that the American taxpayer's money is being used prudently.

@Shukralla because a huge chunk of IMF money comes from USA

@Shukralla because Pakistan requested imf for a bailout package

@Shukralla Because IMF belongs to US.

@Shukralla Because they contribute a large part of the IMF funds to bail out Pakistan. So they are within their rights to look at where their money goes.

@Shukralla more than 70% IMF fund is from US

@Shukralla because the money imf is giving is actually coming from USA ( the mejor portion)

Not a good news for Pakistan. IMF wants to know about the agreement signed by China And Pakistan also IMF wants to check the repaying capacity of Pakistan. More delay will make situation more complicated as economy has already suffered a lot.

Any lender will try to ensure return of his loan.

@Dilip Thorat And what exactly is sensible about it, other than you hate for Pakistan ? Pakistan is caught in cross fire between US and China, just like it was between US and Russia. However, China has been a greater ally to Pakistan, proven by a long history. US cannot dictate IMF loans, IMF cannot make decisions based on just one members concerns.

The bigger issue is, they all know that this loan is not for Pakistan to stay in their loan trap, but debt consolidation, to actually get out of the IMF loans altogether. Neither US or IMF will want that to happen to because our debt is mega money for them right now.

What an irony? US owes China more than anyone else and China has lend to the US more than any other country.

@Shukralla because its their money as well!!

@Shukralla Because US is the largest conributor to IMF

China helped us out when foreign investment was at the minimum. They certainly are our all weather friend, no matter what the US thinks.

@Shukralla Because USA has largest voting rights in IMF.

Same process as when we apply for a car loan or house loan.

@Shukralla Because the US funds most of IMF.

It’s clear now who’s agenda IMF follows.

Pakistan is already gone in debt trap of Iron Brother, China. Now list will be prepared for the Government Properties that are going to be mortgage to repay Interest of Loans.

The screws are tightening.

Game changer.

Mind game. Nobody would allow a country like Pakistan to go bankrupt. They want payments.

@Shukralla Because, us share is more in imf and any loss due to bad loan will affect more to us.

@Tamza you tried. But both, China & KSA didn’t give you.

@Shukralla Because US has 16% right in IMF and for any proposal to pass 85% majority is required. So if u do some maths u will discover that without US approval IMF wont pass ur loan

If Pakistan hands are tied to manage its deficit than there is nothing wrong to file bankruptcy and live with its means.

@Tamza Didn't you hear? Both China and the Saudis refused to bailout Pakistan, or their terms for the bailout were far more severe. Your PM had no choice but to eat his own words.

All CPEC deals, loans and payments must be presented in full before the Pakisyani people. The citizens have the right to know.

Well well well. Someone badly wants the details of the CPEC loans which had been under wraps so far.

Once cpec is fully functional I am sure we will give loans to imf n china

Such a much by Washington is unacceptable and Imran Khan must immediately condemn this statement. CPEC is Pakistan's only hope of getting rid of US-Anglo divide and rule blackmail

Just one question.... If IMF denies to pay bailout, then???

China should respond by rescheduling all the debt until Pakistan's economy becomes stable enough to withstand repayments.

@Shakhil Ahmed ...game over.

@Nusrat

Agreed .

Bankers first evaluate our existing debt along with our repayment capacity and then decide the quantum of finance .

China may be approached for rescheduling of loan.

US wants to stop CPEC activities.

According to IMF rules, no decision can be taken unless 86% vote in favor of the decision. That means that US consent becomes crucial.

Interesting

What is PRC’s opinion on this?

@Nimit you are correct but to add to information you provided apart from US having 17% votes India also has 2.7% voting shares in IMF. India is contributing above 15billion dollars to IMF reserve while US gives above 100 billion.Now I think all depends upon how transparently Pakistan discloses it's long term loan situation for IMF so to convince voting countries.

Take some action on control of paying in US Dollars, Try to reduce use of petroleum all over the country, do not import any luxury items for 1-2 years, try to educate everybody to reduce use of imported goods. Take help of collages, they can educate their families on it. If possible try to export vegetables to Iran & surrounding countries where you can reach easily, textile of your country is popular all over the world, focus on it, specially in middle east. Some curbs are to be taken, learn from adverse conditions which will teach you some very valuable lesson.

China should help us by reducing the loan burden by waiving at least 50%.

@Abhishek and bro it's 17.5% not 70

@Jamil khan Nope, IMF is not forcing Pakistan to take loan.

CPEC was truly a game changer but not the way the Pakistani policy makers had imagined it to be.

previous governments set us up for failure through sheer incompetence and personal greed.

I think Gov have to think of a Chinese option for a bail out as US will never allow IMF to lend money to Pakistan. Same thing they might have done behind to scene to not allow UAE and KSA to lend money to Pakistan.

No matter how hard Imran Khan will try India and USA nexus will make it hard for him to stand.

@Jamil khan Surprise surprise. You know all the conditions of the Chinese loans, which even the State Bank of Pakistan does not know. Read the editorial, "CPEC transparency", in todays Dawn to be more discernible and less gullible.

Only purpose is to defame CPEC because it seemed that OBOR would ultimately pinch in the US economic balloon n her hegemony as unipolar. Tough time for Pak economy, should b handle wisely

@Jamil khan : correct your math. 27% return on equity in dollar terms on all power projects plus insurance. Even if plant is idle for any reasons like grid problems etc Government has to pay. Besides principal plus interest payments for the loan period.

@Arbaaa stop day dreaming. "Game changer" has actually finished your game.

@Jamil khan day dreaming

This is called blackmail. People of Pakistan knows that US does not like Pak-China friendship. US is gone forever from the minds of Pakistanis. Pakistanis now like China and Russia.

Why China not writing off debt?

@Strategist correct your knowledge. As per your government, there is no IMF loan active against Pakistan. And USA is the largest contributor in IMF. And voting right is based on the contribution by members. USA has 16% voting rights (highest), followed by Japan (~10-12) and China (8). So USA will have biggest say. It will ensure safety of its money

Situation is indeed tough for Pakistan at the moment but presents as an opportunity as well to get our house in order and play the situation in our favor. There will be a lot of pressure on Chinese to prove th eUS wrong in this instance and we might be able to negotiate a better deal with them. I am glad we have an honest leadership at the helm now and I am sure they will make the right decisions.

@Faisal "Nobody would allow a country like Pakistan to go bankrupt." Bankruptcy is something that has never been faced by a country. No one exactly knows what it means. Does bankruptcy mean that wheat will stop growing in the field? Will cows stop milking? Will bankruptcy stop the trucks to transport the wheat and milk to the market? Prolong that line and you'll find out what bankruptcy results in. It will prove one thing for sure. It is the economic management system of the country that failed, not the country's economy. Bankruptcy means revamp of economic management. What exactly it is, is what bankruptcy will reveal. No one will allow that to happen. They will try to "manage" the bankruptcy so that the economic management stays in place. The "world" cannot afford that Pakistan changes it's economic system, it is too big.

@Zakked Live in dreams. That is what brought you all to this stage

What ur govt. Couldnt do, that work IMF will do. Cpec contracts transparency.

@Wise2win both of them trust each other. If required, China will give more loans to USA

We can believe anyone but US

@Tru ask Russia to give India s400 for free for the sake of good old times.

@Alba Pakistan is a nuclear power and that makes a huge difference.

@Strategist Agreed China is a great friend but it is your duty as a tax payer what are the terms and conditions agreed by your Govt to receive loans from them.. If through IMF nation gets that information what is wrong in it.. You should help it..

@Jamil khan good argument. Please indicate which project in CPEC will generate revenue for Pakistan?

When China can invest 60 bn US dollars for infrastructure, then they can also pay 10 bn for working capital. No need to go to IMF.

Pakistan can't sustain with the loan of $10 billion....it needs at least $30 billion

@Jalaluddin S. Hussain As much as it hurts self esteem, acknowledge that (1) USA won’t need loan to repay loans, (2) China has so much at stake in several aspects, they will never demand repayment and (3) if push comes to shove, US has muscle power and allies.

All Pakistani top financial experts have reviewed the grave situation Pakistan is in right now. They have come up with an out of the box suggestion of printing US dollars and repaying the debt. A few hours after this suggestion was passed on to the hon PM, he came on TV and said "I will steer you out of this current crisis".

@Mani - "Just one question.... If IMF denies to pay bailout, then???"

You saw what Pakistani diplomat was caught doing, dint you?

The loans which can’t be disclosed should be converted to grants.

Where is the real game changer CPEC as most Pakistani used to claim.

The Chinese debt on Pakistan is beyond the capacity of Pakistan to repay; they have to mortgage part of Pakistan to China according to the Chinese practice and other such examples elsewhere. Hence it is better for Pakistan to take the full bail out from China to consolidate the debt.

Most likely US through IMF will ask us to wind up CPEC. For them - It's either them or China.

Perhaps China will agree to convert its loan to a grant.

IMF loan will definitely be a game changer. Iron and non iron brothers will help us to become the most developed country in the world. We will make and sell drones and become rich soon.

We need secularism and open mindedness to reform our agriculture and tourism in par with modern times. Only this is the way we can improve our economy.

@Strategist : Do you really think that by availing now loan of around $6b, Pakistan will come out of this trap? This loan is for running government for 5 years and after that again government will run to somewhere for loan. If the infrastructure will not yield good return by then, it is for sure that nobody will offer loan at that time..

sooner or later Pakistanis shall have to work hard if they want to survive.

Fault of previous governments. Now the usa has got us were it want us. The people of Pakistan are to be blamed to some extent. They don't pay taxes, Curruption in every department. There is Mafia culture, were helped is provided by people in power. About time we wake up that the world had passed us.

Pakistan has to move very carefully as all of this hassle by USA about debt is really against the CPEC project itself.

Lofty claims about undying friendship is one thing and helping when really needed is another. Should'nt China write off loans given to Pakistan for friendship? Very smartly China has trapped Pakistan in it's debt trap for which Pakistan has to go to IMF(Read USA) for help. Kashmir fixation and being blindly dependant on China has landed Pakistan in the soup that it finds itself in. All the best !

@Crusoe us owes 1,8 trillion with a 21 trillion dollar economy..u need to compare yourself to somaila mian.

Chinese loan would not be that much problem as Mr. Ahsan(former Minister) tweeted that maximum 2 billion dollar per year to pay after 2022.

@confused Nice try.

@Khan Wali "US wants to stop CPEC activities." Why do they want the details of CPEC in exchange of 8bn? Is it the price of information? How much the CPEC worth If the information worth 8bn?

Pakistan wants loans. Why did Imran attack Nawaz on loans? Don’t we know that we already have gigantic, not huge, loan money to pay back and instead of cutting expenses to live within our means we are asking for more loans? Why brigades, not platoons, are inducted as ministers, state ministers, advisors, special assistants, parliamentary secretaries in center and provinces when we are so tight on cash? Can’t they work free or on honorarium to prove patriotic? I can show mirror to prove how big our cabinet was when Pakistan came into existence. It was real daunting task to govern since Pakistan was not only newly born but had two wings-East Pakistan and West Pakistan to govern right from scratch and without IMF loans. We used pencil and rubbed the text and wrote new text on the same page to economize. People voted for Imran to see Naya Pakistan and I wish PM Imran creates new Pakistan in its truest sense but without any more loans and instead start paying back loans, aameen. Iqbal Hadi Zaidi

Tough times for Pakistan

why cant china just give money as help(not loan) to its iron brother pakistan?

@Ashpak Shaikh - Indore: You are. Isn't that obvious?

@Khan Wali if CPEC "activities' as you put it, were so great, you would not need loans

@confused "until Pakista's economy becomes stable enough to pay all debts' and when would that be? this is 14TH LOAN FROM IMF IMF is funded by US Taxpayers

No amount of IMF package will be enough to keep Pakistan going in its present state of expenditure. Pakistan needs to earn before spending. It is a normal practice in every household. If you do not spend more than you earn, you would not need any handouts.

@Akhtar Naveed Syed sure Imran can make one of his famous statements 'condemning "this and that and that you think would get you the loan?

@Usman Khan you should also be asking for CPEC Details which Chinese have not given to you if you want the loan, IMF has every right to examine your economic situation which includes CPEC

@Zahid Sadik The country is already bankrupt

@Akhtar Naveed Syed " such a much by Washington" sir, US Taxpayers fund more than half of IMF Money you want the money from IMF, Deal with 'Such a much' do you have any other choice?

@Faisal sure, this "mind game' as you put it involves real money Sri Lanka had to hand over a port to China for non payment instead of mind games focus on what part of Pakistan China will want to take in return for money

@Usman Khan if you asked me for money i would surely want to know your debt obligations.

@Anonymouseeeee sure then go to China and ask for more money don't go to IMF that is funded by the USA

Well done Imran Khan !

@confused : They are not simple businessmen. America could have even write off.

The hand that gives is always on top.

@Vivek Gwadar or something else China never offers free money and Pakistan survives on emotional thinking that this is their 'Iron brother'

@SHAHID SATTAR blame US What were you all doing with all the borrowed money?

@M. Khan how is it US fault that you can't manage your money You borrowed money from anyone who looked at you US funds IMF Why can't they ensure that if they give yet another loan to Pakistan , that it gets repaid?

Pakistan needs downsizing its public sector, go for a national austerity campaign and control theft and wastage of energy resources.

no problem... i think just pressure

How about Govt officers not taking salaries for 3 months and cutting of all salaries by half? But we all know there is zero percentage chance of that happening.

Why is Pakistan asking for a loan to IMF? Is that not something they can request to China? For China this amount is not so big. Besides, Pakistan will not need to follow conditions that may be put by IMF for the loan.

True colours of our friends and enemies are clearly exposed with conspiracy theories and creating obstacles against PM Imran Khan and his government. Because, they don't want Pakistan to prosper, financially stable and peaceful - this is why they are using various tactics to destabilise us.

@Bimal William You are only wise Pakistani , I can see.

One side we r saying do not panic other side we follow IMF's very hard terms. Simply postpone the repayment schedule of china by 4 to 6 years with little bit extra interest.

@Shahid Do you have any option ?

@Atul "Why is Pakistan asking for a loan to IMF? Is that not something they can request to China? " Why are Indians so much worried about Pakistan?

Minister, civil services, army personnel all drawing huge salaries and Imran khan is asking ordinary citizens for funds to build dams. Why can't their salaries and perks be halved?

The economic war between USA and China is main problem for this statement from US.

@Ranjhana - those are long term plans- they need the money now.

@rohit "why cant china just give money as help(not loan) to its iron brother pakistan?" Go ask them if that concerns you that much. You can send Modi for that, he seems to scare the Chinese.

@Real salaria - "It will be great if the us refuses the loan."

Typical cynicism & negativity from neighbourly trolls!

Saudi can give 10 billion dollars

@Mukul - The likes of you have spammed the comments section. Looks like CPEC really got under the skin of right-wing trolls and how Pakistan obsessed you guys are!

The million dollar question is: why IMF bailout is necessary after $60 billion CPEC investment?

China can help Pakistan; IMF loan should be avoided.

What’s is plan B if IMF refuses.

Further what was a flow in and out of last debts?

How much Pak owe to china and when us blames china debt trap , despite saying it wrong what is the total debt position with china?

Let’s all this put on publically available information so public can have an informed decision for next election.

Good opportunity for PTI to make full and complete disclosure of everything “as is” and “would be”

China can easily bailout Pakistan. It could provide interest-free loans or forgive some of the existing debt. After all, it is an all-weather friend.

It seems Dawn readers are experts in international economics.

No need to worry as long as US can look after what suits us best.

@Thiru US has not taken loan. China has invested in US treasury bonds ( basically US did not ask. China voluntarily subscribed to bonds). The bonds are in USD. That is the greatest strength of US. They can just simply print USD and give to anyone having the treasury bond ( not that they will resort to it. But that is classic fiscal deficit way of doing things). Those blabbering China has given loans to US have absolutely no clue on how financial markets work

I am not sure why this government wants to go to the IMF - kicking and screaming for a bailout, while being bullied by the US, who are trying to dictate the terms.

Whereas, Germany - the largest economy is awash with Cash with a record budget surplus so far this year, exceeding all of 2017's budget surplus. Something even the US has never achieved. An achievement that immediately triggered calls for tax cuts and higher public investment. Germany has also expressed interesting in strengthening relations with the new government. Remember, Germany is one nation that even Pakistan was able to lend $100,000 to after it emerged from the devasting Nazi rule and WWII which had crippled the German economy. Why not availe the opportunity to open new channels for financial assistance, investments and better relations with this European powerhouse - to bypass IMF? $8 Billion is not huge for Germans.

Perhaps the FM needs to explore the possibilities before being humilaited by the IMF Bailout.

@Jamil khan then why so panic in Pak govt about financial situation

@Anti-Corruption_Pakistani Fyi if this bailout happens it will be thirteenth baliout of Pakistan by IMF you cant blame your foes evrytime..

What happened to your sweeter than honey higher than Himalaya friend..?

Makes perfect sense. Pakistan should continue to introduce reforms for a resilient economy rather than relying on loans to pay off interest on previous loans.

@Crusoe The difference is those debts are not guaranteed by US govt excerpt for few treasury papers. Besides they owe it in their home currency. Get the difference?

@Anti-Corruption_Pakistani Well said brother.

Ironic statement from the US, given that it is under massive debt from China itself. However, the American economy is competitive in terms of value-added products and services.

Problem with the debt in Pakistan is that it has not been used to stimulate growth but to pursue mega projects that have to be heavily subsidized in addition to massive corruption.

IMF is like no different than imperialism. US wants to know everything about Pakistans CPEC. Trust me their more worried about Pakistan success and want to focus on Pakistans downfall.

@Thiru guys trade imbalance is different from loans. US and China has trade deficit not loan.

@James if you have no idea about a country, best not to comment. How can this government be responsible for the debt when it has hardly been in power for 40 days? Seriously..

@SHAHID SATTAR Okay, so you want Pakistan to get out of the US’ influence, then why the F, don’t you pay back the loans or ask China to write off the loans instead of going to the IMF. Contrary to the emerging belief, US has & will always have the the the most influence in the world stage because the US is fundamentally stronger than the rest of the world, from its education & economy to its laws & military.

@Ranjhana That's our problem not yours! We stand behind our PM, even if we don't agree with all the policies, we know he is doing the right thing to get us out of the mess once and for all.

@Jalaluddin S. Hussain Printing more $$$$$$$$$$$$$$

@M. Khan why are we blaming US for our problems? We got ourselves into this situation and the blame lies with us. Anyone who gives loans is going to ask about details of existing loans.

China seems to have turned its back on Pakistan

I think signing the CPEC was grave mistake comitted By Pakistan. Now Pakistan really caught up in really sticky situation Its easy for Imran to shout from containners but lets see what you do when he is in power

@Raja Parekh "It seems Dawn readers are experts in international economics." Yes, and they're mostly from India. Read below.

this happens when you keep spending more than your income. it is PPP and PMLN which were involved in this criminal activity. It is pay back time and borrowed money have been wasted on consumption rather than investment.

Number of countries are in similar debt trap . Malaysia is trying to escape the trap so should Pakistan do .

The rabbit is out of the hat. Having 16 board members in IMF governing body & 28% contribution to operational funding, US will definitely conduct a through scrutiny of all aspects of CPEC fundings & its debt servicing mechanism,in order to make sure that this exceptional bailout is not used for Chinese loan repayments. In the light of this perception in the minds of 16 bipartisan senators that CPEC loan is a debt trap for Pakistan should be worrisome for our finance team who must carry out homework to dispel this impression. Apart from very stringent conditionalities as prerequisites, this demand whose details for all practical purposes is not even known to the authorities of state bank, guardians of our fiscal policy implementation, is not a good starter. It is prudent to say that PTI, which in its opposition days was advocating transparency of this controversial deal is sitting mum & not disclosing its details to all the stakeholders. The govt. must remove shroud ofsecrecy w/o delay.

@Pankaj "why IMF bailout is necessary after $60 billion CPEC investment?" The CPEC is not to run the government, the IMF one is. China deals with Pakistan, whoever might be in government. IMF deals with government whoever is in government. It's totally different.

Do not give loan.

I would suggest, cut down the defence expendiature by half. 29% expenditure is not acceptable. Worldwide this expenditure is below 10% of GDP. India spends 2% of its GDP on defence.

I thought IK was going to solve these issues within 90 days?

@Arbaaa that's extremely funny statement

@T they have refused

How about asking India for a loan?

IMF wud not give any loan to pakistan..

It's funny when I read people chanting China China,when it's actually USA USA.They are the only super power in the world now,even China is dependent on USA.China is a manufacturing hub but US is innovative hub.Pakistan basically missed it,all these years when there were 2 superpowers they choose to sit with US.Now that there is only one the have changed sides.Dont expect US to be on your side when it's YOU who decided to part ways.Buy duplicate from China

@Crusoe 1.8 trillion debt to China and inspite of that US threatened tariff and China bowed down immediately. That's how superpowers flex muscles.

A time to test the all weatherness of Chinese friendship.

Pakistan often call Chinese loan as Chinese investment. US call tis investment “a loan”, which actually it is - and a debt trap, which it will become.

@Ranjhana SO TRUE.

@Jalaluddin S. Hussain IMF money is mostly American and European tax payer money is 2nd largest contributor is Japan.

@Nisar Ahmed Agreed

@Jamil khan _ You better study it well before offering your comments.

You need a lesson or two in economics and trade and how it functions in developing economies.

Chinese support system is nothing other than the zamindari system that had prevailed for centuries!

Here is a quote from their Red Book I read several years ago and states somewhat (paraphrased) -

I for myself, China for Chinese and the rest of the world go to hell.

Let them!

@Harmony-1© Ur comments generally are opposite to your name

US using politics in IMF loan. Obviously scared of china larger interest, U S seems panicked.

It doesn’t make sense. If you have less debt, here you go, you can have your loan; if you are heavily in debt, no loan for you.... that reasoning makes sense for a commercial lender whose primary concern is ability to repay the loan. But the IMF is a development organization. Their charter is to fund countries that most need the money.

US has a debt of 3 trillion and how did you get into that situation. India has a debt of $650 billion borrowed from World Bank another US controlled organisation.

@Dilruba All though a feeble attempt at sarcasm, but the irony is, you are right, because after this the country will make structural changes to ensure no more loans, ever. Reason, we have an honest leader at the top, something you cannot say after the Rafael scandal.

Why didn’t Pakistan go to the IMF in the first place to finance CPEC?

If China writeoffs its debts, US will have no excuse. IK should ask China to writeoff all debts.

no more bossing

At the end of the day, this is nothing but a political game. The bottom line is that Pakistan will have to compromise on something if it wants IMF to bail it out.

Keep away from mfi Pakistan must control Imports Food items cars luxury goods and many more items Pakistani can live with out these items for two years

Sportsman should be sportsman, he cannot be good politician.

If Pakistan wants to grow it has to tame the white elephant on whom it spends 3.5% of its GDP.

@Tariq Nobody is your brother here. This is a world stage and you should expect a very dirty politics. It's in human DNA to fight with each other and it's not going to go away anytime soon. So embrace this politics and work for your own country. USA is just doing that. They don't want China to become powerful otherwise they will lose their role as super power.

@Trump it - Unfortunately, yours are always cynical & negative!

This is what your all weather friend has done to you. We knew it is coming

PM khan dont like IMF so why go to them let china write off debt for their transit route to port !

USA to review Chinese debt before IMF loan request! This is the result of wrong policies against Pakistan by ex-rulers Nawaz Sharif & Asif Ali Zardari to win USA's favor for strengthening their rule.

I guess it has NOT dawned on Imran Khan the impact of an IMF Loan denial. I hope that Paksitan gets the loan but the denial would be catastrophic, for sure, in near terms and might even be in long term.

@Parameswaran N S , Agree.

@MakeInBharat At the opportune time, not now, too much focus already.

@Pathanoo There is a Plan B in place.

@Raghu Come back in a year and see the difference. You will be saddened.

The trolls are all excited but are oblivious of their own $650 billion debt. On top of that their government has quietly applied to AIDB , a Chinese set up Bank, for another $5 billion

As the saying goes “ people in glass houses, ......”

@Skeptic There is no humiliation even in a refusal. IMF cannot refuse a member a loan request, however it can change request anount baded on repayment proposals. IMF only business is to lend money. If it starts refusing, it will go out of business. Besides PTI government is looking for a bridging loan not a long term loan.

i sincerely wish and hope that iMF refused loan for Pakistan. Pakistan is horrible manager of money. She can never pay back the borrowed money. while i didnt vote for Trump and think low of this administration but i totally agree with them. Pompeo is on target saying that Pak should not be given a single $. im hoping that Sanity prevails and Pakistan is TOLD to go and work for dignity just like other nations have to. Good Luck Pakistan.

@Mandira hahaha. apparently you dont know about american tax payer stuff. Zero $ are generated by American tax payers to give out as hand outs!! America is not in possession of trillion of $ because of its tax payer, its because it can generate $ from "thin air" without any backing of any object. plz name one other country that can do that. yup, none!! thats why America holds the keys! and thats why its so easy to buy whatever we want as american consumer since immense $ injection in the economy. oh well, i hope you dont fall in this trap and incorrectly used term "american tax payers' money"

@zak the same line you had repeated 1 year ago..when will that next year come in your dictionary

@Raghu But Nawaz Sharif was in power a year ago, so no one could say “come back in one year,” least of all me. But do come back in 1 year, now that IK has the reigns, and see the difference.

USA please dont put your nose between Pakistan and China !!!

@zak do you know how much Chinese got debt . . . . Ours is 600 billion . . .better check Chinese debt. . its staggering 2.58 trillion . . Better check before commenting,

@Strategist so why is pakistan being so generous to IMF

Refuse IMF loan to show self respect. Tell China to restructure your loan and postpone next payments for next 10 years. Future payments to china should be contingent upon making profits from CPEC . Give yourself, Pakistan next 10 years to reorganize, get your house in order and come back as a strong nation. Fact is not going any where. Just work hard one person at a time.

@bilal-atlanta where do you live actually? From your comment it seems you atleast don't live in united states of America.

@bilal-atlanta What are you talking about? It doesn't make any sense. Which planet you are living on? It seems like you must be having a weird dream. Please wake up and then retype your comment.

@A shah. "Why China not writing off debt?" are you really this dumb?

Where is all weather friend why he is not speaking anything despite being 3rd biggest contributior of IMf why china is not explaining there lending mechanism to IMF, why after cpec there is going to be 13 bailout, this all does not make any sense, still cpec is game changer?

What happened to the iron brothers for life theory.. well unless the reference was to bondage and chains.

@bilal-atlanta Do you actually pay taxes in USA? I wish it was that way you mentioned.. that USA could generate wealth out of thin air..

Maybe Pakistan could ask India for a bailout !

Various governments in Pakistan since the Ayub Regime in 1958 has and have received Billions of dollars in AID, but has anyone asked the various governments, where the money has ended up or who were the beneficiaries of those Billions. Definitely not the poor masses. So why should the creditor nations or the IMF should provide more money to the present government. Before providing any more Aid or Credit, all the previous books should be looked into and established the names of the looters. IMF even if it decide to help, should monitor the inflow of funds. All the import of luxury items should be banned, the money should be only for developments which benefit the common man.

Pakistan should prepare for plan 'B', as of now it is becoming increasingly difficult to get loan from IMF.

Various governments in Pakistan since the Ayub Regime in 1958 has and have received Billions of dollars in AID, but has anyone asked the various governments, where the money has ended up or who were the beneficiaries of those Billions. Definitely not the poor masses. So why should the creditor nations or the IMF should provide more money to the present government. Before providing any more Aid or Credit, all the previous books should be looked into and established the names of the looters. IMF even if it decide to help, should monitor the inflow of funds. All the import of luxury items should be banned, the money should be only for developments which benefit the common man

@ See Reality that bailout from IMF is to pay to various lenders to Pakistan including the import bill for oil and various other debt.

@Rohit Bhardwaj Also mention that against is 600 B US$ debt, the forex reserve for us is @ 450 US$. So, effectively it is only 150 B US$ only.

Why don't Pakistan go to OIC for loans?

@Raj, CA, USA Actually Bilal is right. USD value is propped up by all countries of the world from Saudi to China trades in USD and thereby gives the currency the value. US can literally print trillions of dollars and get away with it due to this as inflation in printing dollars is borne by every country in the world .

Iron brother China has 1700 billion USD of forex reserves and will definitely help the younger brother Pakistan.... Imagine, if you have 1700 rupees, cant you give 20 rupees to your younger brother who is in urgent need?

@Common Sense Yes true, but China is not doing this in fact China is charging heavy interest rates than IMF. Really it is odd a junior Accountant would have worked out and costed the loan from China with income from CPEC. How come Pakistan failed to do just simple artimatic .