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Pakistan Asks For Imf Bailout Loan, Fund Offers $5.3 Billion

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http://uk.reuters.com/article/2013/07/04/uk-pakistan-imf-idUKBRE9630HN20130704

Pakistan asked for a new bailout loan from the International Monetary Fund on Thursday to boost its ailing economy, settling on an initial package of $5.3 billion (3.51 billion pounds) following weeks of talks with a visiting IMF delegation.

The request marks a step forward for Pakistan's new Prime Minister Nawaz Sharif as he tries to find ways to fix the country's finances and show his commitment to restructuring its moribund economy.

But it also highlights a sense of urgency for Pakistan where the central bank has only about $6.25 billion left in reserves, enough to cover less than six weeks of imports.

"This is a Pakistan-designed programme. It includes bringing the fiscal deficit to a more sustainable level," Jeffrey Franks, the regional adviser to the Fund on Pakistan, told reporters.

"The overall focus of the programme is to boost economic growth so there is a better life for vulnerable Pakistanis."

Lodging a loan request is the first step in a potentially long process that will involve Pakistan committing to reforms, particularly on broadening its narrow tax base and cutting subsidies, which lenders say benefit mainly the rich.

So what they need to do is reform the system so that there are even bigger benefits for the rich?

A uprising in Pakistan looming?

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Anything above 210 on the FAO Food Price Index is considered destabilising. It's currently running at 211.3, down a fraction from earlier in the year.

The peak of 238 corresponded with the Arab Spring Winter of 2011.

home_graph_3.jpg

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Good news, $5.29 billion to be injected into london propwerty.

I'd say the Pakistanis have invested already. That money will be poured into a bottomless well.

Spoke with a couple of people from Karachi a few weeks ago - rising temperatures are insane, year on year, and water shortages must lead to war with India over the Himalaya dams.

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I'd say the Pakistanis have invested already. That money will be poured into a bottomless well.

Spoke with a couple of people from Karachi a few weeks ago - rising temperatures are insane, year on year, and water shortages must lead to war with India over the Himalaya dams.

This is where I see it ending up, maybe even worse if China decide to exploit the situation and get involved aswell.

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  • 246 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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