IMF, World Bank postpone Pakistan trips

Published: May 5, 2011
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Fund delays disbursements, refuses to set new dates for talks.

Fund delays disbursements, refuses to set new dates for talks.

WASHINGTON: 

The International Monetary Fund (IMF) has postponed talks in Pakistan next week due to security concerns, an IMF spokesman said on Wednesday, delaying a deal to disburse more than $3 billion in funds to the country.

The killing of Osama bin Laden by US special forces on Sunday at a compound near Islamabad has raised worries about the potential for retaliatory attacks.

“An IMF mission to meet Pakistani authorities in Islamabad … has been postponed in light of security developments in Pakistan,” an IMF spokesman told Reuters. “No new dates have been set at this stage.”

The IMF mission was meant to discuss budget targets for the fiscal year 2011/12 and to review economic and policy developments under Pakistan’s $11 billion IMF loan programme, the spokesman said.

The World Bank said it had also postponed travel to Pakistan although loan disbursements for development and social projects were not affected, including funding for rebuilding of areas devastated by massive flooding last year. It is not unusual that missions by international institutions are postponed when geopolitical events give rise to concerns staff could face harm.

IMF disbursements to Pakistan of two remaining tranches of about $3 billion under the program is critical to help the nation through a financial crunch due to a widening fiscal deficit brought about by the flooding.

That said, analysts said last month Pakistan’s foreign exchange reserves hit a record high of $17.95 billion in the week ended March 26 although they said they eased to $17.31 billion in the week ended April 9.

Pakistan agreed to an IMF loan programme in November 2008 to avert a financial crisis. So far, about $8 billion of the loan has been disbursed, while an additional $451 million in funding has since been authorised to cope with damage caused by the summer floods.

Published in The Express Tribune, May 5th, 2011.

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Reader Comments (17)

  • Ali Turk
    May 5, 2011 - 8:25AM

    IMF mission should not come .FBR has been lying to IMF.

    IMF should ask FBR who was the owner of Abbotabad house and was he filing tax returns as required under tax law?.if yes how much income he was declaring?. if Not, IMF should not offer a dime

    we the citizens are sick and tiered of lies that are being told.Recommend

  • Asim+Ali
    May 5, 2011 - 9:25AM

    The last thing the country needs are more loans. Loans which will get the trigger happy generals buy more weapons. Loans which will enrich our politicians, loans which have taken the nation into darkness. What this country needs is leadership. What this country needs is the plugging of brain drain. Both leadership and brain drain would have questioned the status quo. And that is why both have been forced to make hay somewhere else. After 64 years, a nuclear power and $55 billion in debt, cannot a) defend its country and b) cannot provide fuel for electricity, has a law and order crises needs to reinvent itself. And believe me this reinvention is not going to come from GHQ or Kakul. It will come from our nationals who have been forced to immigrate!Recommend

  • Pragmatist
    May 5, 2011 - 9:29AM

    All international agencies should boycott Pakistan until it comes clean on the Osama issue. Hafiz Saeed and Dawood Ibrahim (another terrorist who is being protected by the Pakistani military and ISI) must be brought to justice. Panetta has made it plain that he believes the ISI is training and financing the terror infrastructure in the region. Terrorist would not survive in the region unless they had the resources of a state to help them.
    Aid that were provided through IMF, flood relief etc were being funneled to support terrorism and building more nukes and missiles. Recommend

  • Abdul Ali
    May 5, 2011 - 10:38AM

    FBR has been lying to IMF.
    IMF should not enter in dialouge and seek return of funds .People are not getting benefit of aid and IMF loansRecommend

  • NA
    May 5, 2011 - 10:41AM

    OBL after effects started…Recommend

  • Hedgefunder
    May 5, 2011 - 11:20AM

    Just as i said couple of days ago !! The side effects of drug called sheltering OBL, has started taking over!!
    This is first of many such delays and cancellations that are likely to take place!!
    But its really BAD NEWS for Pakistan, as they still needs the Funds before June!!!!!Recommend

  • SK
    May 5, 2011 - 11:22AM

    may they never come back and may we learn to rely on our own resources….it might turn out to be blessing in disguiseRecommend

  • Anserali Khan
    May 5, 2011 - 2:11PM

    IMF mission should not come
    We as citizens do not benefit from the loans or the money.

    First condition of new IMF loan should be every member of Parliament including the President should declare his/her assets and make public their Income Tax Returns which should be made compulsory. If these Members of Parliament can levy tax,let them also pay tax. Another non-negotiable condition should be every Rupee earned should be subject to tax including agriculture.

    Consider privatizing tax collection as FBR has failed.Recommend

  • May 5, 2011 - 2:52PM

    War is coming, war is coming.Recommend

  • Hedgefunder
    May 5, 2011 - 4:07PM

    @Moise:
    Don’t tempt faith!! its already at your doorstep!Recommend

  • ashok sai
    May 5, 2011 - 4:54PM

    @ All Pakistanis

    Don’t worry, as Mr.Kayani said ‘Nation’s pride and respect will not be compromised for the civilians prosperity’, practice to eat ‘grass’.Recommend

  • Meekal Ahmed
    May 6, 2011 - 12:17AM

    This is to be expected. These guys take their cue from the UN. if they issue a “travel advisory”, they don’t go any place.

    They can defy the UN ban but their life insurance policies would be cancelled. No staff member would risk that.

    I suspect they will meet in Dubai. Our economic managers would love that. Time to enjoy some shopping and living in a 6-star hotel — all at taxpayer expense. Recommend

  • Meekal Ahmed
    May 6, 2011 - 12:23AM

    @Anserali Khan:
    You need to go further than that. No sector to remain untaxed; tax property, residential and commercial; impose the RGST including on services; bring back progressive taxes; restructure the public enterprises with strong conditionality; get rid of the circular debt; safety nets and subsidies ONLY for the poor; get inflation down; boost exports, contain imports with demand management policies; keep the fiscal deficit tight; let the stimulus for growth come from the PRIVATE sector; stop crowding them out of the credit market, this keeps market interest rates high because of endless government borrowing; reduce your debt; reduce your dependence on foreign savings/aid;boost domestic savings and reduce government dis-savings. Recommend

  • May 6, 2011 - 12:13PM

    @Hedgefunder:
    Writing are on the wall.

    Events already happened:

    Flood of Al Qaeda articles in media from hotels to transit lounge, brides to name of patsies
    Mullen visits blaming Pakistan
    Cutting off financial loans
    Obama Westpoint speech
    CFR & Rand corporation propaganda
    Prince Bandar visit and KSA PK siding with China quite possibly
    Russia boosting missile production
    US economy collapsing, 2 billion left to debt ceiling
    Central banks amassing gold and silver in record quantities

    False flag operations with blame on Pakistan will possibly trigger it.

    There were similar ostriches in Iraq before the attack, pretend everything is OK and absurd to think about it. Imaginary Kuwaiti babies changed that. We like to keep our hand in sands and expect the world is same as it is shown in insurance and pension commercials.Recommend

  • May 6, 2011 - 12:14PM

    *head not handRecommend

  • Aqeel PAKISTANI
    May 18, 2011 - 7:12AM

    We the Pakistani nation openly declare that we are not responsible for a single rupee taken by our government as a loan from IMF or from any one else.
    We don’t need any loan from any one. As we have enough resources of our own.
    So if some one gives loan to a Pakistani (either a government person or civilian), he must receive it from a person to whom he gave it.
    emphasized textRecommend

  • Raj
    May 18, 2011 - 9:10AM

    Is this due to IMF chief’s sex scandal?Recommend

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