Pakistan-IMF talks on bailout package extended after 'good progress' in discussions
62
The technical level talks between Pakistan and the International Monetary Fund (IMF) on the proposed bailout package that were expected to conclude today were extended for another two days on Friday.
"We have made good progress in our discussions with the visiting IMF Mission. Consultations will continue over the weekend," a brief statement issued by the finance ministry said.
Sources told DawnNewsTV that a deadlock remains on some issues being discussed between the two sides, which they said is expected to be settled over the course of the next two days.
Islamabad and the IMF mission had kicked off technical level talks on April 29 to sort out details of the proposed bailout package over the next 10 days. The two sides were scheduled to conclude a staff-level agreement today.
Read: IMF talks progressing, says Hafeez
A source at the finance division had told Dawn that after the successful technical level talks Pakistan would sign an agreement with the IMF latest by May 10. The agreement would then be sent to the IMF board, the source had added.
The proposed bailout package is expected to be $6-8 billion.
During their discussions on Wednesday, the government and IMF had agreed that the country would withdraw tax exemptions amounting to Rs700 billion within two years.
As per the understanding, the government will start withdrawing exemptions offered in various taxes amounting to around Rs350bn in the budget for 2019-20.
The finance ministry had approached the IMF in August 2018 for a bailout package, whereas last month, the then finance minister Asad Umar announced that the two sides had — more or less — reached an understanding on a package for bailing out the country’s ailing economy.
“In the next step, the IMF will send its mission to Pakistan in the next few weeks to work out technical details. But in principle, we have reached an agreement,” he had said. However, Umar was removed from the post in a dramatic move and was replaced with Dr Abdul Hafeez Shaikh — an internationally renowned economist.
Dr Shaikh served as the finance minister from 2010 to 2013 during the PPP government's rule. During his tenure as federal minister, Dr Shaikh completed 34 sale transactions worth Rs300 billion in banking, telecom, electricity, and manufacturing.
Subsequently, an IMF employee Dr Reza Baqir was appointed governor of the State Bank of Pakistan (SBP) to serve for a three-year term. The chairman of the Federal Board of Revenue was also changed in a sudden move.
Read more
On DawnNews
Comments (62) Closed
May 10, 2019 11:33pm
The Pakistani state has become irrelevant, now that the IMF are just talking to each other on both sides of the table. Let them sort it out among themselves.
Recommend
0
May 10, 2019 11:37pm
Would you please provide details of this deal to the poor nation who is being ripped off by IMF year after year? Why IMF would help the nation whose economy plunge from 5.8 growth to negative ? how much more devaluation on cards and how much more taxes?
Recommend
0
May 10, 2019 11:39pm
devaluation again..!
Recommend
0
May 10, 2019 11:39pm
All ministers just want to issue statement after statement. Why not be patient and wait for an outcome. Same they are doing for oil discovery. Giving false information does not serve the country.
Recommend
0
May 10, 2019 11:45pm
I’m just curious to know what is the world record for the longest period of time of negotiations of any country with the imf
Recommend
0
May 10, 2019 11:45pm
I thought there would announcement today for the IMF deal as stated by government yesterday but status is same .Just announced it when it done ..
Recommend
0
May 10, 2019 11:49pm
Just $6-8 billions? Peanuts. Reject it. Do NOT accept anything below $25 billion.
Recommend
0
May 10, 2019 11:53pm
Talks talks , more discussions, nothing fruitful in sight!
Recommend
0
May 11, 2019 12:02am
Bad omen
Recommend
0
May 11, 2019 12:04am
The IMF has already installed its own officials as the Finance Minister of Pakistan as well as Governor of SBP. Its clear that from now on, the IMF will be running Pakistan's economy, which means devaluation of PKR, higher inflation, higher taxes and lower subsidies.
Recommend
0
May 11, 2019 12:05am
What is gained by going to IMF they will kill is
We should try our best to avoid this trap
Recommend
0
May 11, 2019 12:07am
This is first time in the history of Pakistan that a civil govt approaching IMF for loan that will be utilize for trade deficit adjustment and not for corruption or misuse. We have seen in past that a huge amount of money was invested in dead projects, like Motorway, Green train and Orange train like projects. If we could built a dam, like Kala Bagh, we can earn $2-3 Billion per year. This dam can repay its cost in only three years and Pakistan will earn $2-3 Billion per year.
Recommend
0
May 11, 2019 12:10am
@Alla Bux, It looks like you have lot of money in the Bank?
Recommend
0
May 11, 2019 12:17am
@optimist, oil discovery is still on going. They had an issue with deep drilling. Hence the announcement delay.
By the way once the oil is drilled. It will take 7-8 years to make use of it.
Recommend
0
May 11, 2019 12:18am
@Alla Bux, 25 billion, please, they are not even going to offer 6 billion to us, until and unleash we sold all our loss making enterprises and cut government jobs to half, also cut on government expenditure and this is where we got dead lock today, as current government love its luxurious lifestyle more than any other previous government.
Recommend
0
May 11, 2019 12:24am
In diplomatic language there is no agreement.
Recommend
0
May 11, 2019 12:32am
@Alla Bux, "Just $6-8 billions? Peanuts. Reject it. Do NOT accept anything below $25 billion."
Whose money it is anyway ?
Recommend
0
May 11, 2019 12:43am
Tomorrow is U-turn day
Recommend
0
May 11, 2019 12:50am
PMLN have alot of responsibility for the mess we are in..they took 30 billion dollars in 5 years in loans and today, Pakistan has to pay over 1/2 it's tax revenue to pay the interest.
Until criminals are not made to return their loot, Pakistan will not progress!
Recommend
0
May 11, 2019 01:02am
Thats good, we dont want anything rushed. All fhe technicalities must be met.
Recommend
0
May 11, 2019 01:16am
The IMF loan will certainly make people of Pakistan poorer. The government must tell us where and how the money will be spent. Most possibly this pot of money will be spent entirely for loan repayment. The status quo remains same.
Recommend
0
May 11, 2019 01:20am
IMF-IMF talks on Pakistan bailout package extended after 'good progress' in discussions.
Recommend
0
May 11, 2019 01:23am
Let's wait and see the end of these on-going marathon talks?
Recommend
0
May 11, 2019 01:24am
@Bharat Jha, hoovering over IMF and Pakistan deal would not help Indians
Recommend
0
May 11, 2019 01:43am
What are we expecting? Favorable terms? This is a bailout package. A 12th program. We are under economic distress. Let’s this be painful but managed with discipline and genuine structural reform. Else our situation will be no less than venezuela.
Recommend
0
May 11, 2019 01:45am
@RashFacts, who asked us to go to IMF ? Btw , we grant huge subsidies to huge businesses who don’t even pay their fair share in taxes . All domestic sugar mill owners for example get massive subsidies and sell sugar to us which would have been cheaper if we just imported it . There is massive corruption in the name of subsidies and IMF rightly points out at most of them . We drag our feet when it comes to end this corruption and blame IMF .
Recommend
0
May 11, 2019 01:47am
Its a complete sell out to IMF.
Recommend
0
May 11, 2019 01:51am
@NewBorn, well said... No cool-off clauses it seems.
Recommend
0
May 11, 2019 02:00am
This is a huge victory by PMIK geopolitical strategy to make IMF agree to terms
Recommend
0
May 11, 2019 02:02am
Its up to IMF what they decide for Pakistan. The government is like a beggar who looks to the donor with empty hands.
Recommend
0
May 11, 2019 02:24am
Enough of IMF's measly loans that act as debt traps! Time for a $30-50bn loan with which we overhaul education, infrastructure, social welfare, and investment ecosystems! Countries develop only when governments invest into their people - not when they bow their heads down to suit-wearing elites that recommend damning the poor in a thousand different ways!
Recommend
0
May 11, 2019 02:24am
I see lots of negativity about IMF in this forum. But no one explains why not? If IMF wants us to raise taxes on the rich and remove subsidies, is it saying do because it wants share in those taxes?
Recommend
0
May 11, 2019 02:48am
Good news. Pakistan will be superpower in South Asia. Inshallah
Recommend
0
May 11, 2019 02:48am
Instead of surrendering to IMF why the government should declare emergency in the country and squeeze the looters to recover the looted money from them.
Recommend
0
May 11, 2019 04:01am
Nation is under subjugation of IMF due to plundering of public money by PPP & PMLN regimes. Present Economic conditions r so adverse that IMF is exploiting it without mercy. Begger has no choice. Same is the case with PTI govt. Nation must standby PM IK to sail through this rough patch and prey for Pakistan success & prosperity.
Recommend
0
May 11, 2019 04:02am
Good, drown fast.
Recommend
0
May 11, 2019 04:15am
Talk, talk and talk but no action.
Recommend
0
May 11, 2019 04:20am
@Pervez, -- I agree with you. There are some strings attached and a way to go forward.
Recommend
0
May 11, 2019 04:32am
Give us atleast 30 billion dollars. 6-8 billion dollars is peanuts. It will last only 4-5 months.
Recommend
0
May 11, 2019 05:21am
So the IMF is not ready to cede an inch and is adamant on it's terms and conditions .
Pakistan needs skilled negotiators but sadly it's IMF on both sides of the table .
Looks like something big will happen in matters of privatisation, taxation and devaluation.
Keep the fingers crossed and brace for impact .
Recommend
0
May 11, 2019 05:22am
Even oil rich countries have to bow before the IFIs. Why did Pakistan think it was special?
Recommend
0
May 11, 2019 05:26am
IMF should relocate Pakistanis from US stripping their citizenship so that they can help Pakistan instead of radicalising US.
Recommend
0
May 11, 2019 05:53am
As a Canadian of Indian origin , I wish good luck to Pakistan for getting an IMF Loan. Even if Pakistan gets $8-$10 Billion out of the requested $12 Billion; I would call it a success. I further urge the Pakistani team of economists & IK government to work together & to focus on increasing revenues for Pakistan because the Loan is not the be all & end all for Pakistan and I also wish Pakistan a success in reforms in that area of increasing exports & revenues.
Recommend
0
May 11, 2019 05:57am
After having their way with Finance Minister & SBI Chief, now IMF has delayed the sanction of loans till they have their way in appointing their guy as Pakistan PM too!
Recommend
0
May 11, 2019 06:01am
Thus far, Pakistan played the mercenary for foreign countries in return for their money. But now it seems Pakistan is willing to play the 'pliable client' too in return for IMF money. Why isn't the public standing up to this collective humiliation of the Pakistani people? As Franklin once said, it can be a Democracy or a Republic only if the people keep it so and that means holding those in power accountable for their deeds. Something sinister is brewing up.
Recommend
0
May 11, 2019 06:18am
Our next generation has been sold out. Maybe even the generation coming after it.
Recommend
0
May 11, 2019 06:19am
At this rate Apple or Microsoft could "buy" Pakistan including each and every Pakistani.
Recommend
0
May 11, 2019 06:20am
@Alla Bux, you don't have capacity to repay 8 bn$ then how will you pay 25bn$?
Recommend
0
May 11, 2019 06:20am
Let’s assume after removing exemptions, adding new taxes crashing PKR and getting our collective nose rubbed in mud, Pakistan gets 6-8billion dollars. That’s enough till Dec-2019. What happens in 2020. The whole humiliating cycle retreats again with more taxes, rupee depreciation etc.
Pakistan does not produce much except some cheap agriculture, cotton fabric or football bladders. It’s in no position to be benefited from any free trade agreement.
I hope PMIK announcement of discovery of huge oil and gas is true and we become rich as KSA or UAE.
Recommend
0
May 11, 2019 06:35am
China will get its money. Pakistan gets debts.
Recommend
0
May 11, 2019 06:35am
@Alla Bux,
Just $6-8 billions? Peanuts. Reject it. Do NOT accept anything below $25 billion """""""""""""
Good suggestion.But for that amount to be given as loan ,does Pakistan have any assets left.All have already pawned to China for CPEC project.
Recommend
0
May 11, 2019 06:41am
@Alla Bux, "Just $6-8 billions? Peanuts. Reject it. Do NOT accept anything below $25 billion"
Have you ever taken a home loan? Credit history, ability to repay all get taken into account. Now IMF is not even like a home loan provider, it is the last resort saviour, means it tries to salvage the situation to save the political and global economic situation. Saving Pakistan thirteen times from defaulting/bankruptcy shows intent, but let's not push our luck. Pakistan zindabad..
Recommend
0
May 11, 2019 06:45am
USA owns China some trillion of dollars but he is not afraid to put tariffs on Chinese products . It’s always debt to GDP ratio which matters . It’s true that our GDP is low and that can only be improved through devaluation. Rupee should be devalued again. This will be tough on people but will give a kick start. China kept its currency devalued for years.
Recommend
0
May 11, 2019 06:45am
In this era of diplomacy, YES or NO have become too difficult words to speak and to act upon.
How long, discussions are needed to decide on both sides. This is a fast moving world but some of its aspects are too slow like IMF discussions are taking too long and probably, by that time, Pakistan would in a state of suffering at such a scale that a new loan package would be needed to apply and perhaps by the approval time of that next loan, the time would arrive for the further next loan package.
Two things are sure for Pakistan, They apparently show and talk they don't like it but they don't reject it also.If IMF is the problem for Pakistan , why do they try to apply for that. And if IMF is not satisfied on terms and conditions why do they provide every year.
Recommend
0
May 11, 2019 06:45am
Solve the Afghan issue then everything will be fine.
Recommend
0
May 11, 2019 07:27am
Live that the lady is wearing salwar kameez, perhaps respect to local culture. However , the respect ends pretty much there !
Recommend
0
May 11, 2019 07:30am
Thanks to white elephant - armed forces -, Pakistan is sinking deeper into financial mess in the pretext of existential threat from India.
Recommend
0
May 11, 2019 07:36am
You guys have to get out of sophisticated begging. Carve out a good life for your citizens.
Recommend
0
May 11, 2019 10:37am
No matter what the Government might say, it seems to me that Pakistan has so far failed to adhere to IMF Loan conditions.
Recommend
0
May 11, 2019 04:00pm
"We have made good progress in our discussions with the visiting IMF Mission. Consultations will continue over the weekend," ... Blah, Blah, Blah. Success means Pakistan has avoided financial collapse.
Recommend
0
May 11, 2019 09:28pm
@Ash Man , not more than eight weeks.
Recommend
0
May 13, 2019 04:04am
@Rizwan, it is measly 2 billion dollars a year which will vanish at the first burp.
Recommend
0
