Monday, July 30, 2018

Imran Khan Confirms Seeking Biggest IMF Bailout Ever- As Expected!

 Times of India

NEW DELHI: Days before his oath-taking ceremony as the Prime Minister of Pakistan, Imran Khan is set to approve country's largest ever bailout package from International Monetary Fund (IMF) to stabilize his country's economy, reported UK-based The Times.
The $12-billion bailout is expected to put into motion as soon as Khan takes over the office of the Prime Minister. He is expected to take oath on August 11.
But an IMF bailout would likely hamper his aim of creating an Islamic welfare system, at least in the short-term. 
Exactly as I'd suggested days ago.

After Pakistan’s Soft Coup- Imran Khan’s Dangerous Victory 

Pakistan faces a mounting economic crisis that is likely to require a bailout from the International Monetary Fund, although PTI has not ruled out seeking succour from China, Islamabad's closest ally.

Khan will go with the IMF- That's why he won. He's the bankers boy.

And my comment
The IMF will as part of the bail out make their usual demands for restructuring of Pakistans spending.

Which most probably indicates any big promises he made will fall to the wayside, necessarily of course.

Reinforced with information from the comments section,  shared in today's earlier post

IMF: Bailing Out Pakistan & The Chinese Invasion of Pakistan

Penny, in response to your speculation that Imran will choose the IMF over China, he already promised to approach the IMF back in May of this year.

From The News International: 'Imran hints at approaching IMF after coming to power'

During a meeting with UK-based equity firm, Exotic Capital, Imran privately admitted that the IMF's "investments would be necessary for Pakistan. Imran had also expressed disapproval of CPEC, calling out its lack of "transparency", while signalling towards more "constructive ties with the US". The banksters at Exotic were quite pleased with what they heard; indeed, this is bad for China.

Link: https://www.thenews.com.pk/print/313185-imran-hints-at-approaching-imf-after-coming-to-power

Based on the type of leader Khan appears to be I had speculated he will go to the IMF instead of China for funds Pakistan needs. It appears Khan had in fact previously informed Exotic Capital in the UK that was the route he intended to take. 

Which will result in his lofty electoral promises being null and void.

Khan/Con knew months ago he was going to the IMF for a bailout.
It's so easy to make promises one never intends to keep.

Well, just a few days have passed and already I've got two correct predictions under my hat!
1-Khan will take the IMF bail out
2-Khan will not be able to keep whatever lofty promises he made


 

6 comments:

  1. IF I understand all this correctly, the IMF is to the world, what the Federal Reserve is to the United States. Do they loan out imaginary money too?

    ReplyDelete
    Replies
    1. Hi RP
      In a nutshell that's about right.
      The US provides most of the money that is lent out through the IMF

      Quoting from the earlier post

      In these circumstances, the United States — the largest contributor to IMF —

      According to a 2016 report by the Congressional Budget Office, U.S. obligations to the IMF were then $164 billion. But, as the CBO reported, it is very difficult to account for the actual costs we incur.


      Delete
    2. Reminds me of Monopoly! Pass go-receive 200 dollars!

      Delete
    3. And Imran passed go!
      More then once.

      Delete
  2. Imran Khan is preparing a massive privatization plan which includes some 200 state-owned businesses. This is to prepare for the incoming IMF loans

    Link from Financial Times: https://www.ft.com/content/43253dde-962d-11e8-b67b-b8205561c3fe

    ReplyDelete

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