New Delhi, 12th February 2023:
IMF Loan Conditions to Pakistan n Lesson for India
Pakistan is left with only 2.5 Billion USD forex reserve that is sufficient only for 2 weeks n if Pakistan does get help then with in 3 weeks it will go default. It imports will stop n there will be crisis.
For this Pakistan seeks 6.5 Billion USD loan from IMF.
To disburse first installment of 1.1 Bil USD, IMF team visited from 31st January to 9th February to Pakistan.
They had long rounds of discussion but loan cud not be finalised. Now IMF team has returned back.
From 13th February 2023, second round of online discussion will start between IMF n Pakistan for loan disbursement.
Loan cud not be sanctioned n main reason for it is IMF doesn’t have confidence on Pak.
IMF believes that Pak always takes loans on name of humanity but misuse that loan, So to avoid this, this time IMF sent a MEFP (Memorandum for Economic and Financial Policies ) draft to Pak on 11th Feb n said that if Pak agrees conditions mentioned in this MEFP draft then only grant will be sanctioned.
I don’t have copy of that draft but through news portals, I got to know abt conditions mentioned in draft.
These conditions r mostly related to fiscal measures n institutional measures.
Here r few of conditions for loan :
1. Imposing taxes amounting to Rs170 billion : Impose new tax to public to increase revenue receipts
2. Minimising untargeted subsidies in the gas and energy sectors : It will increase prices of Gas in Pak
3. Ensuring that there is zero addition to gas sector’s circular debt ; This is related to removing subsidy on electricity. It will increase electricity prices in Pak
4. Raising the petroleum development levy on diesel to Rs50 : Pak already raised prices of petrol now diesel will also be costly there
5. Increasing allocation of BISP (Benazir Income Support Programme ) to Rs400bn : This is for poor people
6. Reduce defence budget by 20%
7. This one is most explosive : declare asset details of all civil servants and army officers – This one is toughest condition n it also shows that IMF doesn’t trust on Pak administration.
They know that root cause of Pak destruction is Pak’s corrupt system n till there is this corrupt system whatever grant they give, will not benefit to Pakistan n will benefit only these corrupt officers.
Pak doesn’t have much options now, What will happen
If they accept conditions : Inflation will go sky rocket, businesses will close, lot of people will lose job, unemployment will increase, crime rate will increase. Corrupt officers will be exposed.
IMF is not govt body. Its controlled by group of global bankers
led by Rothschild family. IMF is part of deep state. Pak will come under control of DS. Pakistan is anti Israel while there r lot of cities on name of Rothschild family in Israel.
Pakistan current condition is lesson for India also
specially few states like Punjab, Rajasthan, Himachal, WB, Telangana, TN etc all those states who promotes freebies culture.
Pak debt to GDP is around 70 – 75%
Punjab, Rajasthan also near to 45-50%
Circular electricity debt that Pak is facing today, Many Indian states r also
There is no free electricity. When govt say to give you free electricity it means on behalf of u Govt will pay to electricity distribution companies.
Circular electricity debt means when Govt stop giving payment to electricity distribution company they will stop payment of electricity generation companies generation companies will stop payment of Coal mines n they will stop their supplier
Last year exactly same happened in India, there was no coal shortage it was false news, real reason was circular electricity debt
Increasing defense budget is also reason of worry.
many people think that defence budget means modern arms n ammunition but biggest component in defence budget is Pension.
Around 30-40% is pension. This year govt brought it down to 22% n will bring it down further by Agniveer
But the way opposition is opposing Agniveer n bringing back OPS is major reason of worry.
Remember nothing is free.
When a leader gives you Rs 10 free for ur votes, He is panning to make Rs 90 from corruption.
We r lucky that we have nationalist n honest govt in center otherwise Cong was taking us by 2014 in same direction where Pakistan is today.
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