World 'has six days to save Pakistan'

[Mid]

World 'has six days to save Pakistan'
Shaiq Hussain
29-10-2008

German foreign minister, Frank-Walter Steinmeier said Tuesday (October 28) Pakistan had just a 'few days' to raise billions of dollars in foreign loans to avert a looming financial crisis.

The German foreign minister while addressing a joint press conference here with his Pakistani counterpart, Shah Mahmood Qureshi said Pakistan must secure a loan from the International Monetary Fund (IMF) within a week to avert the grave financial crisis.

He said, "I hope the decision will be taken soon. It won’t help to have it in six months or six weeks, rather we need it in the coming six days. Then one can perhaps avoid the most difficult situation in Pakistan."

He said Germany would help Pakistan in negotiating a deal with the IMF. "We want to support Pakistan not only in fair weather but also in stormy weather," he added.

Earlier, the visiting German foreign minister held separate talks with President Asif Ali Zardari and foreign minister Shah Mahmood Qureshi.

He said Germany, which was Europe's biggest economy, and other countries were discussing a separate package of assistance for Pakistan to boost faltering economic growth.

Foreign minister Qureshi said Steinmeier had been very supportive of Pakistan in talks with its foreign backers.

He said Pakistan had also sought Germany's assistance in accessing European markets.

He said Germany was Pakistan's largest trading partner in the EU and it would like withdrawal of anti-dumping duties on Pakistani textiles that constituted 69 per cent of its total exports.

He said Pakistan and Germany, in their talks, underlined the need to upgrade their bilateral relations on economic, political, military and cultural areas and agreed on initiating a strategic dialogue.

He stressed upon the need of improved economic relations with Germany saying that what Pakistan was looking forward to was not aid but trade.

He said Pakistan had suggested regular interaction with Germany at the foreign ministers' level besides a strategic dialogue at the Foreign Secretaries level to strengthen ties between the two countries.

The German Foreign Minister said his country would extend short- and long-term support to Pakistan at the 'Friends of Pakistan' meeting in mid-November in Abu Dhabi.

He said, "We need to talk about ways and means so that the international community can provide assistance to Pakistan, specially in the border and tribal areas."

The German foreign minister appreciated the ongoing dialogue and jirga between Pakistan and Afghanistan and hoped that the process would continue and would also help in normalizing the volatile situation in tribal areas.

He said the political relations between Pakistan and Afghanistan needed to be decisive as those were vital for achieving stability in the region.

He also noted the resolve of Pakistani government in fighting terrorism and urged what he termed a "balanced mix" of military, political and economic measures to address the situation in the tribal areas.

Foreign minister Qureshi appreciated Germany's support at the Friends of Pakistan initiative and termed it "encouraging, supportive and positive", particularly in areas of education, uplift of tribal areas and in developing cooperation.

Responding to a question on alleged US attacks on Pakistan’s tribal areas, the German foreign minister mentioned the statements and the clear policy of Pakistani leaders on the issue saying it was now up to the country’s leadership to see how it wanted to address the matter.

asianewsnet.net


another failed state with a nuclear bomb ?

.

[Marmite the Dog]

Bummer...

[Thormaturge]

^^
Indeed, how much has Pakistan wasted on a nuclear programme it can't afford?

Let the IMF take control. The nukes will surely be the first thing to go.

[good2bhappy]

a slide on the currency will be good for my hols in Feb

[buriramboy]

I suppose another large influx to the Uk is imminent then.

[Thormaturge]

I'm waiting to hear about the offer of assistance from India.

[TizMe]

I'm sure they can raise some funds by selling nuclear technology to some of their Muslim brothers.

[keda]

That's a bigoted and racist remark, not only muslims want nukes.

Do you perchance also have Alzheimer?

[jandajoy]

Why don't I seem to be terribly worried about this?

Does it mean I'm a bad person?

[buriramboy]

For those thinking about coming to the UK in these hard times......

[chitown]

Are they all looking to be UK pensioners and welfare recipients without actually immigrating?

[keda]

Is it a coincidence that in 6 days it's the US election?

[plorf]

Hate Steinmeier, silly socialist who's ruining his country but giving other countries lectures about its taxation and banking system (Switzerland..)

[Happyman]

World 'has six days to save Pakistan'
Shaiq Hussain
29-10-2008


.

Ok ! OK We hear you . ( said the world)


Give us a couple of weeks and we will organize a series of summit meetings to discuss this and will produce a report sometime in Feb next yea-----------!!!

Hello Hello ! anybody there ?

Ah well we tried !

[bkkandrew]

Old news, Pakistan has been on the cards for default for a few weeks now.

See https://teakdoor.com/us-domestic-issu...tml#post806663

[astasinim]

Theyre being punished by god, because Christianity is the one true faith.

[panama hat]

Are the six days over yet?

Anyone for a last-minute chook-raffle?

[Bugs]

How about now - are the six says up yet?

[Bugs]

^ Wait a min - looks like the IMF is going to help:

Pakistan official: IMF will give $5 billion - International Herald Tribune

ISLAMABAD, Pakistan: Pakistan's top finance official says the country will receive at least $5 billion from the International Monetary Fund within a month to avert a looming crisis.

Shaukat Tareen says IMF officials have approved government plans to reduce Pakistan's yawning trade and budget deficits.

Tareen said Thursday Pakistan would formally request IMF assistance within days and receive between $5 billion and $6 billion.

Pakistan needs to top up its foreign currency reserves after a plunge undermined its currency and raised the prospect of default on its foreign debt.
The government has announced tough reforms but no details.

An economic crisis would further destabilize a country already beset by Islamic militancy.

[Bugs]

^ Hold on maybe they won't take the money?

Press TV - Lawmakers say IMF loan a debt trap

Pakistani lawmakers oppose an IMF loan saying the plan would lead the country into a debt trap and only worsen the national economy.

During Thursday's debate in the Upper House of Parliament, the lawmakers criticizing the government policy of seeking International Monetary Fund money, said the country already owes USD 47b in foreign debt, up from the USD 37b it owed in October 1999 and the situation would get even worse if the government decided to take a loan from the fund, a Press TV correspondent reported.

Shaukat Tareen, the chief advisor to the prime minister for financial affairs, says the country will receive at least USD 5b from the IMF within a month to avert a looming crisis, adding that a formal request for the assistance would be submitted within days and could equal USD 6b.

He said that IMF officials have approved government plans to reduce Pakistan's yawning trade and budget deficits.

Our correspondent said that senators from the opposition stressed the need to reduce government spending and lauded the decision to cut the expenditures of the presidency and other government institutions.

The lawmakers also criticized the plan to privatize parts of the state-run energy sector -a highly profitable national asset- and suggested setting up of a fund to pay off foreign debt and streamline the national economy.

Legislators defending government policy said that the current increase in banking interest rates is required by the IMF facility agreement and added that there is a need for the country's economic experts to devise efficient policies.

If the national economic crisis worsens, it would further destabilize Pakistan which is already been beset by militancy and huge government corruption.

[watterinja]

Action plan:

Sell something
Trade something
Barter something

Get bridging finance from the Muslim world - at zero interest rate. (Last resort)

[Thormaturge]

Let the Taliban run the country.

Should liven things up if they have a few nukes to play with.

[Gaudente]

I was hoping this bond USY8793YAM40 Pakistan 2017 6.875% to hit 20 , it bounced back to almost 40 instead !

[Mid]

IMF okays $7.6b bailout package for Pakistan
Erum Zaidi
The Nation (Pakistan)
Publication Date: 16-11-2008

The International Monetary Fund (IMF) has approved a US$7.6 billion loan for Pakistan as a part of a stand-by arrangement facility under exceptional provisions for an amount as much as 5 times Pakistan’s annual quota over 23 months or 7 quarters in a bid to stabilise the worsening balance of payments position and build up foreign reserves.

This was announced by Shaukat Tarin, finance advisor to the Prime Minister, during a press conference held at SBP premises on Saturday.

“The agreement has been reached with the IMF for getting Stand-By Fund Facility and Letter of Intent (LOI) between IMF and the government will be signed next week in order to make this deal a written document,” Tarin said.

Highlighting the details, he said the country would get US$4 billion as first tranche of the loan immediately during the current financial year while the rest of the amount would be released in the next 2-3 years.

He said the interest rate on the facility would vary from 3.51 per cent to 4.51 per cent with some changes as per market conditions. Pakistan will repay the loan over five years starting from 2011, he added.

“The Fund did not give us any conditions different than those already committed by us and explained above, he said, adding that IMF team down with our team in Dubai and prepared a detailed quarterly plan based on our own home-grown agenda. The only area where they counselled us was to increase the interest rate to curtail the core inflation, though fundamentally correct, was negotiated. Overall they felt that that by an large all our targets are reasonable, realistic and achievable provided we show discipline and determination”.

“We are not planning to invest this capital inflow into the stock market but to build up our foreign exchange reserves at appropriate level. I assure you that as a part of fulfilling IMF-funded package, there will be no cut down in development and defence expenditures,” he said.

He said in view of the downgrading of sovereign ratings and risk of credit default swap triggered by weak balance of payment outlook, this is not the suitable time to raise Eurobond and GDRs at international equity market. "However, we need to access American and European markets by signing free trade agreements with US," he said.

“There is lot of business and investment opportunities in Pakistan and by implementing Reconstruction Opportunity Zones (ROZs) programme, Pakistan and Afghanistan would allow exporting some textiles, clothing and other goods without paying US duties, he added.

“We contacted the multilateral agencies and all our friends like Saudi Arabia and China along with other multilateral lending agencies such as Friends of Pakistan, Asian Development Bank and Islamic Development Bank and each one of them was appreciative of our program as well as the predicament that we faced in the form of financing gap. They were all willing to give us a helping hand, but would like us to get the endorsement of our program from the IMF. Moreover, the timing was an issue for us as our foreign exchange reserves were depleting at a regular pace” he said.
He said it was with this background that we approached the IMF, who showed a very positive approach toward Pakistan while assessing its programme.

asianewsnet.net

[Thormaturge]

Invest the money in a decent cricket team and scrap the nuclear weapons.