Noticias de Rupia | Nouvelles de Roupie | Rupiennachrichten | ??????? ????? | ???? | Roepienieuws | Rupi Nyheter | ??????? | Notizie di Rupia | PAKISTAN LEDGER | ???????? ????? | DefensebriefsIntellibriefs Translate to: RSS feed: Save/Share | RUPEE NEWS | November 6th, 2008 | Moin Ansari | ???? ??????? | ????? ????? | The IMF trap was set on November 27th, 2007. Rupee News identified the road to the IMF a year ago. The Sauid help will ensure that Pakistan does not listen to all the diktats of the IMF. Though Pakistan may still use the IMF, but it will not be under the thumb of IMF advisors.

In a display of brotherhood, Saudi Arabia has avoided the US sponsored “Friends of Pakistan” group whose very purpose is to push the IMF agenda down the throat of the Pakistanis. Saudi Arabia believes in direct and bilateral help for Pakistan. In return it gets the Saudis get Pakistani arms, food security, arable land, business opportunities, clout in one of the largest Muslim countries of the world, and other secret defense guarantees.

There is no bankruptcy, there is no default and there is no IMF dictated terms. Pakistan likely to get $2b cash from S Arabia. Zardari with 220-member team arrives in Riyadh

ISLAMABAD/RIYADH: President Asif Ali Zardari accompanied by a 220-member delegation Tuesday left for Saudi Arabia to seek cash grant from the Saudi leadership. During the two-day official visit, President Zardari would seek cash grant from the Saudi government, more investment from Saudi entrepreneurs in energy, infrastructure development, metrochemical, agriculture, information technology and industrial sectors.

Various agreements and Memorandum of Understandings (MoUs) would be signed in this respect. Sources informed Online, chances are very high that Pakistan would get more than $1.75 billion from Saudi government in cash. The Statesman. November 5th, 2008. Pakistan likely to get $2b cash from S Arabia. The Statesman, November 5th, 2008

Hundreds of Billions of Dollars are given as grants to Israel without any negative publicity or fanfare. The US transferred multiple Billions to Europe after the war. Billions are borrowed by the US government without any reference to a precarious economy. No fingers are pointed at Sweden or Iceland when the IMF provides them with Billions of Dollars without any strings. However Pakistan faces an economic downturn becuase of the constant bombardment of two of its provinces and the resulting blowback and the doomsayers come down in droves.

Petraeus gets earful from Zardari, Kiyani, & Minister Mukhtar: US attacks on Pakistan. Its like roaches scurrying when the lights turned out in trashy apartment kitchens. The doomsayers are out in numbers. The Murdock press is having a field day with the difficulties faced by Pakistan. The triumphalist Indian media is going ballistic. The media is full of press reports about Pakistan with countdowns and the usual Indian glee whenever Pakistan has a little trouble. Pakistanis and the world is used to Indian doom and gloom prophecies. Many countries face an economic crisis today–the USA, UK, Sweden, Turkey, Ukraine, Iceland…the list is long. Many will go to the IMF. It is not good, but it is not the end of the world. Pakistan’s banking system has already been through a crisis. The banking system is sound. The problem lies with teething pains that come with any new government, war on its borders, US electioneering rhetoric that scared away investors from Pakistan PPPP incompetence, a lack of governance and a world financial crisis. Who is in charge? by Humayun Gohar

ISLAMABAD: While Pakistan is still desperately trying for $4 to $5 billion cash to stem the tide against its external resources, hopes of assistance from the international community are rising and along with some traditional sectors turning in good performances this could prove a silver lining for Islamabad. Cement, oil and gas, banks, financial and telecoms to name some, according to the recent analysis, are the sectors that are doing well. The banks too have performed profitably during the first nine months – January-September – of calendar year 2008. Arab News Muhammad Aftab, Nov 2nd, 2008

• IMF loan will be last option: Zardari
• The IMF vice and the role the US in placing Pakistan in it
• US interests Risked in Pakistan: Strikes– over playing hand
• Pakistan: What does Zardari have up his sleeve? Bluff, bluster or real economic plan?

JEDDAH: President Asif Zardari has said while cash-strapped Pakistan is still averse to resorting to IMF aid, the country must consider the IMF option as a cure for its ailing economy.

Speaking to Saudi Gazette in an exclusive interview ahead of the visit, Zardari said, “Saudi Arabia has always provided assistance to Pakistan in difficult times”. And these are very difficult times for Pakistan, which needs up to $4.5 billion to deal with a balance of payment crisis, raising the prospect that the violence-hit country will default on its foreign debts. “I would solicit Saudi support for the ‘Friends of Pakistan’ initiative,” the president said. “I sincerely hope that with the steadfast support of the Saudi government, it will achieve the desired objectives.” Monday, November 03, 2008: Says Musharraf’s future to be decided by NA

Pakistanis are disgusted with the new government that took a full treasury of $17 Billion and growing and turned into an empty treasury within a short period of six months. Jan-March of 2008, Pakistan’s stock market was the best performing stock market in the world. In October this wasn’t so!

Foreign Direct Investment (FDI), though small in terms of actual cash dollars, has also flowed in despite political uncertainty that followed the judicial crisis of March 9, 2007. The unrest has continued even after the Feb. 18, 2008 national elections. Traditionally strong performers — telecoms, oil and gas, electricity, petroleum refining, banking and financial services — attracted FDI inflows. These inflows, during July-September, the first quarter of fiscal 2009, were nine percent more than the amount attracted in the same quarter of fiscal 2008.

As the banks and financial services continue to perform well and show good results, it received the highest amount of FDI — $296 million which is 68 percent more than the amount the sector received in the like quarter of last fiscal. This is despite the fact the banks and the financial sector were hit by the ongoing global financial turmoil and the trouble within Pakistan. These adverse factors included the rush on forex, the fast depreciation of the rupee against the greenback and other hard currencies, and the hurtful downturn in the bourses where share values sank and had to be officially frozen through a lower floor. Arab News Muhammad Aftab, Nov 2nd, 2008

• Pakistan trades agri-land for Saudi oil- avoiding IMF chokehold
• Got Milk? Pakistan-Gulf’s food granery! Impact and Analysis

The problem is no one can believe what Mr. Zardari says. He says one things and does the exact opposite. He flirts with world leaders, tries to charm news paper editors with words that they want to hear, avoids conflict with opponents whom he calls allies, and calms down enemies by evoking no threat from them.

Germany promised to help Pakistan negotiate a deal with IMF, and mobilize EU countries to assist Islamabad, including through creation of a special fund.

The fast growing telecoms received $259 million during the first quarter of the current fiscal 2009. However, the inflow was 29 percent smaller than the like quarter of fiscal 2008. But the potential of telecoms, particularly the cellular phones, was brightened still further as China Mobile, already operating in Pakistan, announced plans for a big investment and expansion, that could go as high as $1.6 billion.

Despite the domestic political instability and a financial assistance package still to firm up, analysts are optimistic about FDI prospects. One upbeat analyst projects the FDI inflow of close to $5.0 billion in 2009 fiscal, as was the case in fiscal 2008. Arab News Muhammad Aftab, Nov 2nd, 2008

• The Gulf region imports $200 bilion of food. Pakistan is poised to grab a major share of that market.
• UAE buys $5 Billion farms in Pakistan to avoid food crisis

The ‘Friends of Pakistan’ will meet in Abu Dhabi on November 17 to decide on economic aid for the country, an ally in the global “war on terror”. Pakistan’s friends include Britain, France, Germany, the United States, China, the United Arab Emirates, Canada, Turkey, Australia and Italy plus the United Nations and the European Union.

Additionally, “Pakistan is supported through a series of negotiations by various world economic bodies – World Bank, Islamic Development Bank, Asian Development Bank and the UK’s Department for International Development,” Zardari said, suggesting that options remain open for his country to avoid a loan from the IMF. “Getting aid from the IMF is our last option,” Zardari said. However, he added after a pause “actually, we must consider the IMF option as a medicine that will ultimately cure our ailing economy”. An IMF loan is often tied to stringent conditions, chief of which is elimination of subsidies. In September, the IMF recommended that Pakistan’s fiscal deficit be reduced to 4.7 per cent of the GDP and electricity subsidies be eliminated. Monday, November 03, 2008: Says Musharraf’s future to be decided by NA

Neglected Issues for the new Pakistan government:- Eliminating Food, Fuel subsidies, Keeping the dangerous IMF out, stopping US drones, Afghan mercenaries, Indian consulates. Judge Ifti-Nawaz connection?

• Pakistan: What does Zardari have up his sleeve? Bluff, bluster or real economic plan?
• Pakistan: US-IMF attempt to impose Neocon agenda backfires
• IMF: Deal or no deal? The lies & the trap! Total incompetence!

And that’s Zardari’s concern. “In just five years, our oil bill has increased from $3 billion to over $12 billion, thus creating pressures on our balance of payments, he said. “Such an increase is also creating difficulties for our budget as we have tried to protect our people from the rising cost of energy by subsidising fuel and electricity in the given limits of the budget”.

If Pakistan cuts its electricity subsidies as sought by the IMF, its energy bill – for mainly oil – will get passed on to the people, leading to price rises. “Global food inflation is hovering between 35 and 40 per cent and Pakistan is no exception,” Zardari pointed out while explaining his government’s struggle to control food prices in the midst of various initiatives to return Pakistan on a high growth trajectory. “Unfortunately, for decades, Pakistan was being managed by people who had no perspective or imagination,” Zardari said. “Otherwise, Pakistan is rich in all sorts of resources,” he added.

The president said the multi-faceted cooperation between the two countries is firmly based on institutional linkages, and strong trade and commercial ties. Saudi companies have made significant investments in Pakistan in diverse fields. Our bilateral trade currently stands at around $5.7 billion. He recalled that Saudi Arabia always provided assistance to Pakistan in difficult times. Monday, November 03, 2008: Says Musharraf’s future to be decided by NA

• US wants to shut down ISI. Compliant Zardari is doing it!
• The CIA connection…Benazir death, Musharraf elimination, Zardari coronation.

President Zardari and his team of financial advisers are saying unbelievable things. Are they trying to take the country for a ride or trying to play blind mans poker brinkmanship. It is a dangerous game. By all accounts and going by his own words It seems that President Zardari’s team is ready to pull a rabbit out of his hat!

Blame cannot be shifted. No one else is responsible for the horrible mess Pakistan has landed itself, other then the incompetence of the inept, unqualified and current “government” of Pakistan. Blaming others is a favorite past time of the inefficient and the improvident and improficient ministers masquarading as a government in Pakistan. The PPPP wasted weeks months wrangling over the Chief Justice, while “the treasury burned.” Pakistan: Authoratarianism and Politcal Party Reform: Eliminating “for life” dictators within political parties. Ending “Lotacracy”

“The Saudi Fund for Development has been playing an important role in financing various uplift projects in Pakistan,” he remarked. Recently, the Board of Investment, in collaboration with the Saudi Arabia General Investment Authority (SAGIA) and the Council of Saudi Chambers, held two investment moots in Riyadh and Jeddah. The conferences were a big success, attended by around 360 traders and industrialists from both sides. To a question about recent US-India nuclear deal, he said, “we have asked for a level playing field by evolving an objective, non-discriminatory and criteria-based approach for peaceful uses of nuclear energy. He said this is important for preventing an arms race and also for the credibility of international non-proliferation regime. Monday, November 03, 2008: Says Musharraf’s future to be decided by NA

There is a silver lining.

Although the official forex reserves are depleting fast and there is a serious weakness of the external balances, Islamabad is upbeat about an international financial package to assist it. Shaukat Treen, the former Citibank executive and newly appointed adviser on finance to Prime Minister Yousuf Raza Gilani, is working on three alternatives for international assistance. His Plan “A” envisages assistance from multilateral banks and International Financial Institutions (IFIs), including the World Bank, Asian Development Bank, and Jeddah-based Islamic Development Bank. Plan “B” is based on his hope to receive funds from “Friends of Pakistan” (FOP), formed in New York in September. The consortium is to meet in Abu Dhabi in November. If Tarin cannot find $4 to $5 billion fund in quick disbursing cash, he said, he will be forced to adopt Plan “C”- going to the IMF. The latest reports suggest multilateral organizations and FOP will wait for an IMF endorsement of Pakistani plans, rather than making decisions prior to the Fund’s action.

Islamabad was, however, buoyed up this week with Germany joining the international efforts to bail out Pakistan. Germany came forward with its offer to also mobilize EU countries. German Foreign Minister Frank-Walter Steinmeier, wrapping up his talks with government leaders in Islamabad this week, said, “Pakistan urgently needs International Monetary Fund’s loan to avert an economic crisis.”

Germany is helping Pakistan in its negotiations with IMF. Steinmeier also said, “The international community needs to do what is required of it to do.”

“The possibility of setting up a fund to bail out Pakistan has been discussed with government leaders in Islamabad. The matter will, be discussed in details in Friends of Pakistan consortium meeting in Abu Dhabi. We intend to support Pakistan not only in fair weather, but also in stormy weather,” Steinmeier said.

Noticias de Rupia | Nouvelles de Roupie | Rupiennachrichten | ??????? ????? | ???? | Roepienieuws | Rupi Nyheter | ??????? | Notizie di Rupia | PAKISTAN LEDGER | ???????? ????? | DefensebriefsIntellibriefs Translate to: RSS feed: Save/Share | RUPEE NEWS | November 6th, 2008 | Moin Ansari | ???? ??????? | ????? ????? |