Stories about International Monetary Fund (IMF)

Economic road map: Imran Khan should eat, sleep, breathe (and dream) exports

The government has plethora of tasks at hands, and naturally so since it paraded a picture-perfect dream in its election manifesto. The scorecard, however, had been deteriorating, even before the Pakistan Tehreek-e-Insaf (PTI) government was at the helm of affairs. Twenty months and counting, the Rupee has lost almost 50% of its value and interest rates (borrowing costs) have increased to 13.25%. Have hopes of a quick improvement in the livelihood of the middle-class that voted for this government faded away only to resurface for a better long-term hope? There are no quick fixes for Insafians and Pakistanis. That said, in the ...

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Why the time to invest in Pakistan is now

Being a capital market participant, I have seen quite a few ups and downs during the past decade. I have experience of evaluating a large number of companies listed at the Pakistan Stock Exchange (PSX). I believe, at this point in time, most of the listed companies are trading well below their fair price, thus, offering good return potential and strong dividend yield. Historically speaking, every time our stock market experienced a downturn, it bounced back with more power. Even though the downturns are often abrupt, recovery usually takes a while. Nonetheless, once our stock market comes out of crisis, ...

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Give PTI six months, they said – now we have Rs2.42 trillion added to our debt

A historic problem in Pakistan, one it has been facing for quite some time now, is the debt trap. Each successive government in Pakistan keeps borrowing for temporary fixes, which only helps in the short-term but has made us worse off in the long-run. However, even before it was elected to power, the incumbent government consistently maintained it would get Pakistan out of this trap once and for all (but only they knew how). Thus far, not only has the government been entirely unsuccessful in getting us out of this mess and bridging the gap between expenditures and revenue, it ...

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Why the chicken can never cross the road to Naya Pakistan

On November 29th, the leader of the nation walked up to the stage to a standing applause in an elaborate ceremony celebrating the achievements of Prime Minister Imran Khan’s first 100 days in government, and to set the agenda for the hundreds of days ahead. The speech lasted for the better part of an hour, with its more nuanced prescripts perhaps being dominated by the ‘chicken plan’ in the media cycle. PTI government's briefing on first 100-days begins in Islamabad Posted by Express Tribune on Thursday, November 29, 2018 The suggestion that the provision of five chickens each to rural women as a ...

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To solve the economic crisis, PTI will have to move beyond optics and IK’s persona

The Pakistani rupee plunged against the US dollar yet again last week, this time by almost Rs10. The sudden fall of the rupee, which traded for around Rs140 against the dollar, gave birth to speculation and as a result also led to the stock exchange witnessing a sharp decline in index points. On Monday, the Karachi Stock Exchange saw another bloodbath as it lost 1,355 points. The premier’s statement regarding the possibility of early elections and the forecast by the State Bank of Pakistan that 2019 will slow economic growth from the projected 5% to 4% played a crucial ...

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Walk it like you talk it: What (little) did PTI achieve in its first 100 days?

The Pakistan Tehreek-e-Insaf (PTI) government has finally completed its first 100 days in power. While the number itself is insignificant to judge any government’s performance, it was Imran Khan and the rest of PTI that created the hype over the 100-day agenda to begin with, even before the party won the General Elections. It was perhaps this promise and this plan that played a role in the PTI winning the elections. However, contrary to expectations, these 100 days were not smooth sailing for the PTI. On the contrary, they were marked with controversies, cases in the Supreme Court, U-turns, ...

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Master of U-turns, leader of none

A few days ago, a statement made by Prime Minister Imran Khan started to generate a lot of interest on all media forums. Imran, who is also satirically called “U-turn Khan” for his habit of retracting his lofty statements, tried to defend this practice by stating that a true leader always takes a timely U-turn. Elaborating, he then came up with the analogy of Adolf Hitler and Napoleon Bonaparte’s fatal decision to continue their advance into Russia instead of taking a U-turn, an error which resulted in heavy casualties. According to Imran, “One who doesn’t take decisions according to the demand of ...

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No, the balance of payments crisis is not over – all because PTI did not do its homework on China

Imran Khan’s recent visit to China has now become the most discussed topic in drawing rooms, in the media and in the business world. This was touted as a monumental visit, given that this was the premier’s first visit to China, Pakistan’s most important friend and a significant player on the geopolitical front. With the current financial crisis in the background, the Pakistan Tehreek-e-Insaf (PTI) government was also looking to get an immediate loan from China for economic assistance. This visit would thus determine the relationship between Pakistan’s new government and China, and set the tone for the next ...

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‘Naya Pakistan’ – PTI’s best-selling joke

The verdict of the 2018 by-elections is in, with Pakistan Tehreek-e-Insaf (PTI) losing some of the seats it had previously won in the General Elections. Yes, their supporters will say the party has won more seats than the opposition, but the fact remains that losing seats which you previously won, and that too in the by-polls (which always favour the sitting government) is a bad sign. Things are not going well, and the electorate is noticing the sheer incompetence and cluelessness of the PTI government. I am trying to recall, but despite my best efforts cannot remember a comparable level ...

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We can go to the IMF for loans all we want – it still won’t fix the economic crisis

With the rupee falling against the US dollar, the stock exchange crashing, and foreign currency reserves hitting a new low, it is not out of place to suggest that Imran Khan’s government has been unable to hold a firm grip over the economic crisis. They may have deteriorated the situation further with the hike in electricity and gas tariffs, which has badly affected the middle and lower middle class as the prices of essential commodities is also on the rise. Then, of course, there was the perpetual indecision over going to the International Monetary Fund (IMF), only to finally ...

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