After assuming office for the second consecutive term, Prime Minister Shehbaz Sharif has instructed immediate negotiations with the International Monetary Fund (IMF) for a new loan under its Extended Fund Facility (EFF). In his first economic meeting post-oath-taking, the premier issued directives aimed at reviving the struggling economy. The finance secretary briefed him on the challenging economic situation, emphasizing the need for urgent measures.
Shehbaz, during his election campaign, had affirmed his party’s commitment to entering a new IMF program if elected. Economic experts have supported this move, given the country’s dire economic conditions with no quick solutions in sight. Reports indicate Pakistan’s intention to seek a new IMF loan of at least $6 billion to address impending debt repayments.
Acknowledging the severity of the economic challenges, the premier declared economic revival as the government’s top priority. During the meeting, he pledged to provide maximum support to the business community, outlining plans to encourage investments through effective policies and legislation.
The premier highlighted the importance of automation for transparency in tax collection, ordering the immediate initiation of automation processes in institutions like the Federal Board of Revenue (FBR). He also emphasized the need to expedite the privatization of loss-making state-owned entities to relieve fiscal burdens on the economy, a move agreed upon in June 2023.
In addition, Shehbaz directed the formation of a high-level committee to devise a comprehensive strategy for reducing government board members’ perks. Addressing issues of power and gas theft, he called for a strategy to introduce smart metering to minimize line losses.
The premier stressed the importance of empowering youth financially, seeking effective strategies for providing loans to small and medium-level businesses. He called for a review of government expenditures, suggesting the merger or closure of unnecessary institutions.
Shehbaz also emphasized strengthening the Special Investment Facilitation Council (SIFC) for economic stability. The PMO statement outlined plans for the next session, focusing on FBR-related matters, with the premier assuring emergency steps to facilitate the nation and provide maximum assistance to the business community, investors, and youth.
