Thursday, October 30, 2008

pakistans financial situation as i understand

Pakistan will make a final decision soon with the International Monetary Fund about what is expected to be an estimated $10 billion bailout package. With foreign currency reserves dwindling and the rupee trading at all time lows against the dollar, Pakistan is in danger of defaulting on its debt.

Countries that initially were to help Pakistan out have bailed out. So we had no choice but to seek IMF's help.

"The Pakistani authorities have requested discussions with the IMF on an economic program supported by financial assistance from the Fund to meet the balance of payments difficulties the country is experiencing as a result of high food and fuel prices and the global financial crisis," IMF managing director, Dominique Strauss-Kahn said in a statement.

So if the deal was to be finalized the price of the dollar, electricity gas and petrol will be set by them. In other words we are further being screwed. Why on earth would anyone give us pure cash to do whatever the hell we want with it.
IMF loan could push the rupee even lower against the dollar, drive up unemployment and further raise utility prices.

God help us!

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