Prime Minister Shehbaz Sharif is determined to liberate the country from foreign debts and navigate it through significant economic challenges, including surging circular debt and inflation. Addressing the inaugural meeting of the newly formed 16-member federal cabinet, he asserted, “We will, InshaAllah, rid ourselves of the IMF.”
This statement coincides with the anticipated arrival of an IMF mission for talks on the second review of the $3 billion Stand-by Arrangement (SBA) program. A formal invitation to the Washington-based lender is forthcoming, with talks expected to commence this week. Simultaneously, Pakistan will seek a new deal under the 36-month Extended Fund Facility (EFF), exploring the inclusion of climate finance to potentially increase the program size from $6 billion to $8 billion.
In his address, PM Shehbaz emphasized a shift from seeking loans to attracting investments from friendly nations, expressing this intention to foreign ambassadors. He urged unity in the fight against poverty and called for an end to subsidies for the elite, citing unjustifiability in the face of inflation’s impact on the poor.
Highlighting the ballooning circular debt in the gas and electricity sectors, the premier attributed it to factors such as expensive imported fuels. He advocated for taxing wholesalers instead of retailers, opposing global lenders’ suggestions to tax retailers already burdened by inflation.
Acknowledging the pressing issue of inflation affecting the masses, PM Shehbaz declared that alleviating inflation would be the government’s primary objective. He criticized the concentration of resources among a handful of elites, questioning the rationale behind providing subsidies to this group. In a resolute tone, he stated, “It’s now or never. Perform or perish!”
