Connect with us

Latest News

Pakistan mustn’t squander the IMF loan package

The IMF has laid down stringent conditions of fiscal discipline for Pakistan. News that Pakistan will receive a 39-month Extended Fund Arrangement for about $6 billion from the International Monetary Fund (IMF) – geek speak for a $6-billion loan deal – was met with a virtual bloodbath on the stock market yesterday, with the benchmark…

Pakistan mustn’t squander the IMF loan package

The IMF has laid down stringent conditions of fiscal discipline for Pakistan.

News that Pakistan will receive a 39-month Extended Fund Arrangement for about $6 billion from the International Monetary Fund (IMF) – geek speak for a $6-billion loan deal – was met with a virtual bloodbath on the stock market yesterday, with the benchmark KSI 100 index shedding 816 points to close below the 34,000-mark for the first time in more than three years. It was no state secret that the country, which is facing “economic difficulty” according to the IMF, was in talks with international lenders including the IMF, World Bank and Asian Development Bank to bridge a $12-billion hole in its finances. Now, IMF offering to plug half of that should have, ideally, calmed market fears instead of resulting in a sea of red on the bourses (of the 314 shares listed on the Karachi Stock Exchange, 263 ended in the red yesterday while 13 remained unchanged).

So, what happened? The devil, usually, lies in the detail, and it certainly does in this case. The IMF has laid down stringent conditions of fiscal discipline for Pakistan, terms that will necessitate that the country imposes heavy taxes on consumers and slashes subsidy on utilities and fuel. These inflationary moves are expected to be rolled out as part of the upcoming budget announcement later this month (May 22), and thus the market panic. To be fair, the market’s fears aren’t completely unfounded. This will be Pakistan’s 22nd loan since 1958 from the IMF alone, together amounting to more than $33 billion at current prices (including the latest one). While some of the past loans were actually bailouts, others were fund arrangements like the current one, extended with a view to stabilise Pakistan’s economy and reduce the fiscal deficit.

The IMF’s conditions this time are perhaps more stringent than in the past, but the fact that this short-term pain can lead to a stronger and prosperous financial future for the country would have been the primary reason for the government’s acceptance of the terms. The Imran Khan administration should now ensure that the country doesn’t end up squandering this package and pushes through the ambitious structural reforms agenda for a brighter future.

ERROR: Macro /ads/dfp-ad-article-new is missing!

MORE FROM Opinion and Editorial

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

*

code

Latest News

Worker in UAE stabs roommate over wrong recipe

He allegedly stabbed him using a kitchen knife. An Asian worker was charged with insult and fighting with his roommate at the Ras Al Khaimah Criminal Court after he allegedly stabbed him using a kitchen knife leading to a permanent disability. As per the court records, the case unfolded when the duo had a heated…

Worker in UAE stabs roommate over wrong recipe

He allegedly stabbed him using a kitchen knife.

An Asian worker was charged with insult and fighting with his roommate at the Ras Al Khaimah Criminal Court after he allegedly stabbed him using a kitchen knife leading to a permanent disability.

As per the court records, the case unfolded when the duo had a heated argument over a “wrong recipe” for a dish.

The duo allegedly swore at each other and got involved in a brawl. The forensic report showed the roommate suffered a permanent disability in his hand after the accused slashed his wrist.

Both of them were referred to the public prosecution where they were charged with swearing and assaulting each other. One of them had an additional charge of causing a permanent disability. The case was referred to the RAK Criminal Court where the accused said he was angry after the victim insulted him for telling him about the incorrectly cooked dish.

However, the roommate denied the charges and said that he did not insult or assault the accused. He added that the defendant harshly insulted him for using a wrong recipe and then stabbed him.

The court ordered adjournment of the case to a later time for ruling.

ahmedshaaban@khaleejtimes.com

Ahmed Shaaban

Originally from Egypt, I have been in Dubai since December 2005. Before coming here, I worked as an English language instructor, chief En/Ar translator, proofreader, reporter in Egypt and Qatar. I have also worked as a reporter, correspondent and simultaneous translator with two satellite channels in Dubai. I have a masters degree in media, Cairo University, 2014, a bachelor degree in English language and translation, Ain Shams University, Cairo, 1996, and three post-graduate diplomas in English language and Instruction. With over 19 years of experience in translation, interpretation, EFL instruction, and reporting. I am interested in technology, aviation, politics, as well as community, parliament and defence issues. I enjoy reading, writing, exercising, and surfing the web.

ERROR: Macro /ads/dfp-ad-article-new is missing!

Continue Reading

Latest News

Video: Sheikh Mohammed spends birthday with grandkids

Sheikh Mohammed is celebrating his 70th birthday today. To celebrate his 70th birthday, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai spent his time relaxing with his family. In a video shared by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of…

Video: Sheikh Mohammed spends birthday with grandkids

Sheikh Mohammed is celebrating his 70th birthday today.

To celebrate his 70th birthday, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai spent his time relaxing with his family.

In a video shared by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai on social media, the Dubai Ruler can be seen flocked by his grandchildren as he exits a car. Sheikh Mohammed lovingly interacts with them – exchanging greetings and conversing with his grandkids.

#Family ?? pic.twitter.com/jabuoM3kDH
– Hamdan bin Mohammed (@HamdanMohammed) July 15, 2019

The video then segues to a moment when Sheikh Hamdan carries one of them and the baby is seen trying to catch Sheikh Mohammed’s attention.

Sheikh Mohammed is celebrating his 70th birthday today. He was born on July 15, 1949, at the Al Maktoum house in Al Shindagha. He is the third of Sheikh Rashid bin Saeed Al Maktoum’s four sons. His brothers are Sheikh Maktoum, Sheikh Hamdan and Sheikh Ahmed. His mother was Sheikha Latifa bint Hamdan Al Nahyan, daughter of Sheikh Hamdan bin Zayed bin Khalifa Al Nahyan, a former ruler of Abu Dhabi.

 

ERROR: Macro /ads/dfp-ad-article-new is missing!

MORE FROM UAE

Dubai

Sheikh Mohammed is celebrating his 70th birthday today. READ MORE

Technology

It will also conduct research that will benefit government and… READ MORE

Education

The list of approved universities may be checked on UAE’s Commission… READ MORE

Sharjah

Nine of the 13 left for their hometown in Jamnagar, Gujarat on July… READ MORE

Continue Reading

Latest News

England win Cricket World Cup after Super Over drama

England were all out for 241 on the last ball of the 50th over, chasing New Zealand’s 241 for eight. England won the Cricket World Cup for the first time after New Zealand matched their 15 in a Super Over but lost on fewer boundaries scored in the match after an extraordinary final at Lord’s…

England win Cricket World Cup after Super Over drama

England were all out for 241 on the last ball of the 50th over, chasing New Zealand’s 241 for eight.

England won the Cricket World Cup for the first time after New Zealand matched their 15 in a Super Over but lost on fewer boundaries scored in the match after an extraordinary final at Lord’s was tied on Sunday.

England were all out for 241 on the last ball of the 50th over, chasing New Zealand’s 241 for eight.

England scored 14 in the last over but Mark Wood was run out seeking the second run that would have won it for the hosts.

Ben Stokes, who finished on 84 not out, came back for the Super Over with Jos Buttler amid scenes never before seen at the home of cricket.

New Zealand needed two off the last ball of Jofra Archer’s over but Martin Guptill was run out coming back for the second run and England triumphed due to hitting more boundaries on the day.

England, three-times runners-up previously, had bowled and fielded superbly to restrict 2015 runners-up New Zealand to 241-8, with Liam Plunkett and Chris Woakes each taking three wickets.

Henry Nicholls made 55 and Tom Latham 47 without ever really looking comfortable but the score began to look challenging as England slumped to 86-4 before Stokes and Buttler put on 110 to set up the amazing finale.

 

ERROR: Macro /ads/dfp-ad-article-new is missing!

Continue Reading