ISLAMABAD: Prime Minister Shehbaz Sharif has indicated that the new International Monetary Fund (IMF) program is likely to continue for three years, shedding light on the country’s economic trajectory.
Speaking at a session of the Special Investment Facilitation Council’s (SIFC) apex committee, attended by both civil and military leadership, he underscored the importance of sustained support from the IMF to navigate through economic challenges effectively.
With anticipation of a forthcoming tranche of loans from the IMF, PM Shehbaz emphasized the necessity for ongoing collaboration with the IMF, suggesting that another program may be needed in the future to ensure continued stability and growth.
Expressing gratitude for the unity exhibited by civil-military leadership and lawmakers from various political parties, the prime minister commended their collective commitment to prioritize national development over partisan interests. He lauded the efforts of the former coalition government, which comprised representatives from 13 political parties, in making decisions aimed at advancing the nation’s interests.
In addressing the pressing economic challenges, PM Shehbaz emphasized the imperative of implementing reforms under the IMF program to achieve macroeconomic stability. Notably, he highlighted the need to bolster revenue generation, proposing initiatives such as the digitization of the Federal Board of Revenue (FBR) and crackdowns on electricity theft, which impose significant financial burdens on the national exchequer.
Furthermore, PM Shehbaz underscored the magnitude of circular debt in the energy sector and called for concerted efforts across political divides to address this critical issue. He urged expeditious privatization of state-owned entities burdened with debt, such as Pakistan International Airlines (PIA), emphasizing the importance of making tough decisions to foster sustainable economic growth and development.
Meanwhile, under the stewardship of Finance Minister Muhammad Aurangzeb, Pakistan and the IMF reached a staff-level agreement (SLA) for the completion of the second review and release of the third tranche of $1.1 billion under the Standby Arrangement (SBA) program. This agreement signals Pakistan’s commitment to implementing reforms aimed at addressing fiscal and external sustainability challenges, promoting economic recovery, and fostering inclusive growth in the country.
