Bretton Woods Project - Critical voices on the World Bank and IMF

Jump to main content | Jump to sidebar | Jump to navigation menu

Pakistan needs to borrow "to repay IMF"

News|Bretton Woods Project|25 June 2013|update 86|url
print|email |bookmark FacebookTweet thisdel.icio.usDigg!Stumble UponRedditGoogle BookmarksYahoo Buzz

In late June, finance minister Ishaq Dar informed Pakistan's national assembly that the government "will have to go to the IMF" in order to repay current outstanding loan instalments to the Fund (see Update 84). Though adamant that the government "would not accept any conditionality" imposed "against the interest ... of the country", Dar conceded that without a moratorium on scheduled repayments related to an outstanding $7.6 billion debt to the IMF, Pakistan would be unable to pay the instalments without taking its levels of foreign currency reserves below a "reasonable" level. Also in late June, a senior Pakistani government official was quoted in the Gulf Times newspaper as saying that any "possible bailout package" from the IMF, understood to involve a loan of approximately $4 billion, will include two conditions: the revival of plans for a reformed general sales tax (RGST) to be implemented by 2014/15 financial year and the withdrawal of energy subsidies, requiring hikes in the cost of electricity.

A late May report from UK NGOs Islamic Relief and Jubilee Debt Campaign issued a call for debt relief for Pakistan. Islamic Relief's Pakistan country director Fayaz Ahmad wrote in the foreword: "In providing 'bail-out loans', foreign lenders attach economic conditions that inflict greater suffering on the poorest in society – like the IMF's insistence that Pakistan eliminate oil and electricity subsidies – and the government is unable to refuse. For these reasons, Islamic Relief is calling for a full and transparent audit of Pakistan's external debt, and the cancellation of unjust debt."

Published: 25 June 2013 , last edited: 16 September 2013

Viewings since posted: 876

Articles: 3465

Advanced article search
Search newswire and resources

New website launched

You are now browsing an archive version of the Bretton Woods Project's website. This site has not been updated since September 2013, but may be used for reference material as the nbew site is being developed. However we suggest you look at the new website:

Recent briefings & reports

Memorandum to the International Development Committee: Inquiry on the Future of UK Development Cooperation  26 June 2013

The Doing Business review: a test of World Bank leadership 24 June 2013

Climate Investment Funds Monitor 7: April 2013  25 April 2013

Working paper: The private sector and climate change adaptation: International Finance Corporation investments under the Pilot Program for Climate Resilience  24 April 2013

The UK's role in the World Bank and IMF: Department for International Development and HM Treasury  13 March 2013

World Bank on jobs: a "significant departure" or "business as usual"? 13 February 2013

No item found


Bretton Woods Update, 6 emails/year:
highlights fulltext pdf
Alerts of new web content
Weekly newswire email


Bretton Woods Project on Facebook

home | subscribe | donate | search | help | contact

validate: | XHTML | CSS | RSS

powered by Action Apps | hosted by GreenNet | Credits