Connect with us


Pakistan balks at IMF request for more than $ 6 billion




Talks between Pakistan and the IMF to restart a $ 6 billion loan program have been stalled by Prime Minister Imran Khan’s refusal to introduce unpopular measures, senior government officials have said.

Formal talks to release a tranche of funding have been postponed due to concerns in Islamabad that the introduction of loan-related reforms would provoke a backlash from the hard-hit middle class.

An IMF team due to visit Islamabad in October has not yet arrived “because the fund is waiting to see if we are ready to take further measures to reduce the [fiscal] deficit, ”said one of the officials.

“Given the coronavirus this year, our economy continues to underperform. Tax revenues are declining, ”he added.

Friction points between Islamabad and the IMF when the program resumes include increasing electricity tariffs, higher tax collection targets and increasing the pension rate, which has been lowered to 7% in June against 13.25% earlier in the year.

Pakistan’s economy has not suffered as much of a shock as neighboring India. The Asian Development Bank predicted that the economy would contract 0.4 percent in 2020, but grow 2 percent next year. Mr. Khan spurred growth by unveiling big incentives for the construction industry.

We are in a debt trap which is entirely our fault. It’s a risk to our national security

But analysts said Pakistan needed to join the IMF’s program to honor its debt repayments and release more funds from international financial institutions, such as the World Bank, as well as to finalize a billion euro Eurobond. dollars.

Pakistan’s external debt and liabilities increased from $ 95 billion in 2018 to nearly $ 113 billion in 2020, with a subsequent increase in debt service, according to the State Bank of Pakistan in its published annual report Wednesday.

“We are in a debt trap that is entirely our fault. It’s a risk to our national security, ”said the Institute for Policy Reforms, a Lahore-based think tank.

Sakib Sherani, economist and former finance ministry adviser, said the protests launched by Pakistani opposition parties against Khan “have made it more difficult for the government to adopt unpopular measures. Difficult reforms are always painful. Now is not the time for painful measures. “

Miftah Ismail, former finance minister and opposition leader, said an agreement between Khan and the IMF to reduce the budget deficit appeared to be collapsing. “So far, a plan to reform the tax collection system does not appear to be working,” Mr. Ismail said.

Pakistan is under further pressure after Saudi Arabia demanded repayment of part of a $ 3 billion loan and froze an oil credit facility worth more than $ 3 billion. Officials in Islamabad said Riyadh was afraid to ask for more. This would force Pakistan to seek further loans from China.

“Imran Khan would not be so keen to [fiscal] tightening again, especially when you take into account that there is political pressure, “said Ali Farid Khwaja, analyst at brokerage Khadim Ali Shah Bukhari Securities in Karachi,” but it is essential to embark on a program from the IMF.

A government official told the Financial Times that Pakistan hopes to resume talks by the end of November, but there has been no confirmation from the IMF.

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

picture credit


to request, modification Contact us at Here or [email protected]