Why Pakistan IMF Bailout talks failed??
No Bailout for Pakistan??
Reference -
Transcript -
With your permission, we would like to start this video with ongoing CBI controversy.
On 19th of November, Supreme Judge of India devoted half an hour to explain the allegation labelled by CBI officer M K Sinha.
You all know, On 20th of November, Supreme court of India got angry and remarked that neither Alok Verma nor MK Sinha deserve any hearing. The court also wondered, how come the information submitted to court is reaching media.
Therefore we got curious and we watched program of supreme judge of India on 20th November. Coming up to our expectation, this time pathetic condition of education is being covered. There was no mention, why Supreme court was forced to postpone the hearing of CBI case from 20th November to 29 November.
Now the simple question is, if CBI case was matter of your focus on 19th of November, should it not be covered on 20th of November. why Your viewers don't deserves your insightful analysis on 20th of November. You could have at least said that Under Modi Government, even intolerant Supreme court is now trying to silence media.
Anyways, its better to stay silent and discuss something else, when you are exposing yourself by speaking.
Now, we come to today's topic.
We all know, in between 7 and 20 November, IMF delegation has conducted detailed discussion with Pakistan on next IMF program.
Majority of Pakistani analyst were thinking that by 25 November, Pakistan would have got IMF Bailout.
But now IMF Pakistan Talks have failed to reach conclusion. As per report published in Pakistani media, though 80% of distance has been covered. now only 20% distance is left for Pakistan to get next IMF bailout.
While ending inconclusive talks, both sides decided to continue the talk in upcoming weeks.
But now rather than getting IMF Bailout by 25 November, Pakistan is expecting to get IMF bailout by the mid of January.
Now the question comes, why talks have failed in between Pakistan and IMF.
Our Pakistani friends tend to believe that Pakistan refused to accept tough IMF conditions.
They might be correct in saying, that Its Pakistan which is negotiating with position of strength, and has guts to say No even to IMF.
As we discussed in the past, Pakistani friends talk, as if they are providing bailout to IMF.
The point is simple, Learning from past mistakes, IMF has put strict economic conditions for Pakistan to become eligible for next bailout.
Earlier, IMF delegation used to come to Pakistan on the direction of America, this time IMF delegation is in Pakistan only because Pakistan has requested.
Therefore difference in IMF conditions can be understandable.
IMF is asking Pakistan to collect more tax by increasing General Sales tax, and for increasing interest rate, gas and electricity price.
Pakistan has also been asked to devalue its currency by 10 to 15 rupees more.
its difficult to believe that Pakistan has refused these IMF conditions. In the beginning of his tenure, Imran Khan could have taken tough decision now to show better report card at the end of his 5 years.
In fact, these are normal steps, any expert would have asked Pakistan to do so in order to fix its ongoing financial crisis.
While we have no evidence here, but it appears China Pakistan Economic Corridor might have become an important reason for the deadlock in talk.
Given China has promised big secret financial package to Pakistan, it was expected that Pakistan would not reveal full Cpec details in front of IMF.
Pakistan shared all those details, which have already been available with IMF. For example, Pakistan would soon start repayment of Chinese loans. from year 2020, Pakistan will have to repay 3 to 4 Billion Dollars annually to China.
The Point is different, right now when Pakistan is not able to survive, will it not need another IMF bailout, as soon as current 3 years bailout ends in the year 2021.
Pakistan says CPEC is not responsible for its current economic mess, as it is yet to start loan repayment.
But the reality is, huge import of Chinese goods and material for CPEC must be attributed for increasing import, but There has been no significant increase in export.
Perhaps IMF also understand this reality, Until system is changed substantially, Pakistan will keep on asking for IMF bailout after each five years period.
In fact, this is 22nd time, Pakistan is entering into negotiation for enrollment in next IMF program.
As you can see this snapshot taken from IMF website, Since 1958 to 2013, Pakistan entered in 21 arrangements with IMF.
You can call, these arrangement as IMF bailout to Pakistan, or IMF gifts to Pakistan, or IMf donation to Pakistan. But the fact is, Pakistan needed IMF Support for 21 times in the last 70 years.
Pakistan is IMF addict and it feels pleasure by taking low interest rate loans from International Monitory funds.
the question we should ask, should IMF not put penalty on Pakistan for seeking bailout again and again?
Lets be clear IMF is a bank, and it gets funds from majority of countries. Though America is largest contributor to IMF funds with more than 16% voting rights. India has 2.64% voting rights as per our monitory contribution. But Pakistan which always wants to become equal to India is left with only 0.43% voting rights.
The point is simple, Its duty of all members to make sure, that IMF is wisely using the money deposited by all countries.
Common sense says, if a company is not able to repay its loans, it has to file for bankruptcy. Afterwards either the management of company is changed or its liquidated.
the point we are trying to make is, if Pakistan is again and again failing to correct its path, should IMF not seek fundamental change in the way Pakistan is governed?
Now consider this, rather than being apologetic for seeking 22nd IMF bailout, Pakistan is asking for lenient conditions similar to the conditions, which IMF has offered to Argentina for 50 Billion Dollar bailout in September 2018.
But Argentina is not irresponsible nuclear power with highest rate of building nuclear bombs.
Argentina is not a country responsible for exporting terrorism to neighboring countries.
Moreover, Argentina didn't raise its defense budget by 20% despite facing severe financial crisis for the year 2018 and 19.
Pakistan is special case, and it deserves specially strict treatment. Hopefully IMF will continue to negotiate hard with Pakistan. In these discussion, the main point is, its Pakistan which is looking for IMF arrangement, therefore Pakistan had to agree with tough IMF conditions.
Lets see, if IMF gets generous towards Pakistan in second round of talks. We hope, IMF takes Pakistan bailout as financial decision not as Geo political decision.
Proud Pakistani Finance Minister has famously said, this would be last bailout for Pakistan. Now Its duty of IMF to ensure, that its last bailout for Pakistan.
As per your analysis, Similar to Argentina, should IMF offer generous bailout to Pakistan?
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below.
If you like this video, please share it and subscribe our channel and click on bell icon to view more such interesting videos. Thank You friends for watching this video.
Tags
pakistan imf loan,pakistan imf loan amount,pakistan imf loan 2018,imran khan,imf pakistan,pakistan in indian media latest,pakistan in indian media,india in pakistani media latest,india in pakistani media,Pakistan IMF Talks,imf loan to pakistan 2018,imf loan pakistan,imf bailout for pakistan,imf bailout pakistan,Pakistan IMF talks,Why Pakistan talks with IMF failed,indian foreign affairs news,indian foreign policy against pakistan,modi latest news,Modi news
टिप्पणियाँ
एक टिप्पणी भेजें