ISLAMABAD: Prime Minister Shehbaz Sharif stated on Wednesday that Pakistan is committed to fulfilling the obligations made to the International Monetary Fund (IMF) in order to obtain a short-term financing agreement. This commitment aims to assist the financially strained nation in avoiding a potential default in the foreseeable future.
The local authorities and the International Monetary Fund team have reached a staff-level agreement on the $3 billion stand-by agreement. The executive board of the IMF is scheduled to give the final approval of this agreement on July 12.
A balance of payments crisis has adversely affected the economy, further compounded by the challenge of external debt. Additionally, months of political turmoil have discouraged foreign investment, further exacerbating the situation.
Inflation has surged, with the national currency, the rupee, hitting an all-time low against the US dollar. As a result, the country is facing significant difficulties in affording imports, leading to a sharp decline in industrial output.
During a ceremony in Islamabad commemorating the ten-year anniversary of the CPEC signing, Prime Minister Shehbaz expressed confidence. With the grace of God, he expressed confidence in successfully finalizing the agreement.
Finance Minister Ishaq Dar announced that pending board approval, Pakistan is poised to receive an initial payment of $1.1 billion.
The Prime Minister stressed Pakistan’s achievement in averting default and highlighted the IMF agreement as an opportunity for developmental progress.
Expressing gratitude, the Prime Minister thanked President Xi and the Chinese government for their unwavering support, particularly during the period leading up to the staff-level agreement with the IMF.
He also acknowledged the assistance provided by Saudi Arabia, the United Arab Emirates, and the Islamic Development Fund, which played a vital role in helping Pakistan overcome its financial crisis.
The Prime Minister also thanked President Xi and the Chinese government for their unwavering support during IMF negotiations.
He commended the Chinese and Pakistani workers for their unwavering dedication and strong collaboration, fostering goodwill between the two nations.
