Going to IMF is like Scoring Self Goal..!

Still not late to correct our Qibla..!

20 October 2018
20 October 2018

Subject:- IMF loan is like scoring self goal..!

Dear Mr. Imran Khan Sahab,

AoA.

Sir,

It is really baffling to comprehend that the government of PTI and its Finance team is only looking towards the governments of Kingdom of Saudia Arabia and China (as a last resort) to help Pakistan meet its requirements of foreign exchange, before finally going to the IMF for loan.

Sir, let me once again inform you that the conditions of getting loans from IMF has all the potential to destabilise your government sooner than later, by making it highly unpopular among the masses, due to back breaking increase in rates of utilities, which will push further millions of lower middle class, to upper level of poverty and poor class to the abject poverty level.
In view of the foregoing, you are once again requested to kindly replace your entire Finance team (which has no capacity to go beyond easy way outs) and give the highly challenging task to a new team led by a dynamic man with world view and extremely good connections in the western world and China like Dr. Ikram ul Haq to avert the national financial crisis, by considering following out of the box suggestions, to take Pakistan out of its straitjacket.

1 (a). Pakistan was economically devastated in fighting the American/NATO imposed War on Terror (as a front line State) suffering over $ one trillion losses in the shape of losses of human lives, financial and opportunity costs and damages to its goodwill and infrastructure; one example of which is that during this period Bangladesh moved ahead in education, family planning (1% population growth) and exports (45 billion USD/ year) which consisted mainly of textiles, by getting competitive edge over our textile industry, with zero percent tax for BD produced textile items (in developed countries) like towels and bedsheets etc., while Pakistani textiles were charged 20% tax, resultantly our products became uncompetitive and exports reduced from 25 billion USD to 20 billion USD per year.

1(b). In view of the foregoing, rather than going for borrowing from IMF we should seek (with diplomatic help as well) a moratorium on repayment of loans for five years and side by side implement the following scheme, to build up our foreign exchange reserves, so that economic crisis could be overcome with some out of box thinking to tackle the economic crisis from both supply and demand sides:

1(C). Immediate launching of a scheme for payment of 3% to 5% PA profit (payable bi-annually) on Foreign Currency bank deposits in Pakistan (backed by the sovereign guarantee of the GoP) with a suitable, but attractive fixed period, as suggested below:
~3% PA profit on deposits up to 2 million USD.
~3.5% Profit on deposits over 2 million USD and up to 3 million USD.
~4% profit on deposits over 3 million USD and up to 4 million USD.
~4.5% profit on deposits over 4 million USD and up to 5 million USD.
~5% profit on deposits over 5 million USD.

~The profits on the above scheme should be payable in the USD and should be exempted from ALL taxes and other deductions, as is also the case with Euro and Sukook Bonds, issued by the GoP.

This is a fool proof scheme, sans any risk, [if at all if fails, government will bear no loss] which can boost up our foreign reserves, in a very short time, on extremely cheap rates, as compared to the foreign loans and international bonds, which were sold by the previous government of PMLN, at even 8.25% interest rates: plus undisclosed Tax Exemptions of at least minimum benefits of around 7% (Pakistan will be repaying USD 910 million for USD 500 million Euro Bonds) for which the then PM Mian Nawaz Sharif was requested to hold an inquiry, to fix the responsibility of the culprit(s), who allowed the sale of Euro Bonds, on such a criminally high interest rates.

2. Pakistan may approach REBO Bank and IDB which offer funding at extremely low interest rates of 1% and 2% respectively. Here it must be remembered that although, IMF needs 0.9% interest to cover expenses on loans, yet, harsh conditions it charged 3% interest to Pakistan on its last loan to Pakistan.
3. Pakistan may have tried to get funds from the Asian Infrastructure Investment Bank (AIIB), which is operated from Beijing, China.
4. We may consider pledging gold with China or any suitable country for obtaining loan against gold, as India did in July 1991, when Reserve Bank of India pledged 46.91 tonnes of gold with the Bank of England and the Bank of Japan to raise $400 million.
5. As detailed proposal has already been submitted to you vide emails titled “Suggestions to recover Pakistani wealth stashed abroad” link:- https://www.snayyar.com/suggestions-to-recover-pakistani-wealth-stashed-abroad.html#sthash.mBhTyTki.dpbs
6. Billions of USD can be easily generated by selling the government lands recently taken back from the encroachers or the government may consider selling the prime properties of President House, vast chunks from the hundreds of Kanals of PM House, the Governor House Lahore or the Prime value land of GOR-1 in Lahore, where in a suitable area, a luxurious world class residential tower can be built, for the residence of the government officers.

Best Regards,

Syed Nayyar Uddin Ahmad
03219402157
Lahore.
20 October 2018

Sent from my iPhone