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• Says lender’s ‘stringent conditions’ have been met; hopes this will be country’s last IMF programme
• Meets Yunus on UNGA sidelines, invites Bangladeshi leader to visit Pakistan
• Calls on UN chief to press for implementation of UNSC resolutions on Kashmir
NEW YORK: The International Monetary Fund’s board (IMF) on Wednesday approved a $7 billion Extended Fund Facility (EFF) for Pakistan, providing a critical boost to the country’s struggling economy.
The development was announced by the Prime Minister’s Office, while a statement from the IMF was still expected at the time of going to press.
Shortly after the announcement, Prime Minister Shehbaz Sharif met with IMF chief Kristalina Georgieva in New York and expressed his gratitude for the approval of the loan package.
After their meeting, the IMF boss expressed her approval of Pakistan’s economic progress. She congratulated both the government and the people for implementing key reforms, which facilitated the IMF’s approval of the program.
“We do have good news. We have completed the review of the programme successfully. I want to congratulate the government of Pakistan and the people of Pakistan for moving forward with the home-defined, Pakistan’s own reforms, and they are bringing fruits,” Ms Georgieva stated. “Growth is up, inflation is down, and the economy is on a sound path.”
When asked if these reforms were benefiting Pakistan’s poorer citizens, she responded, “I do sense that this is happening. The government aims to collect taxes from the rich and is strengthening the Benazir [Income Support] programme to support the poor.”
The PM Office statement said the premier expressed his satisfaction with the programme’s approval.
“The implementation of economic reforms is going on rapidly,” he said, adding that the government would continue to work hard to achieve goals related to economic development after achieving economic stability.
The prime minister said the increase in business activities and investment in the country was “welcome and a testament to the hard work of the economic team”.
“Along with the successes on the diplomatic front, the increase in remittances from Pakistanis living abroad is a reflection of their confidence in the government’s policies,” he said, adding that the government was grateful to the Pakistani community.
“If the same hard work continues, God willing, this will be Pakistan’s last IMF programme,” PM Shehbaz said.
The premier thanked Saudi Arabia, China, and the UAE for their support regarding the package, as well as IMF Managing Director Kristalina Georgieva and her team.
Speaking to reporters in New York, PM Shehbaz expressed optimism, reiterating his hope that this would be Pakistan’s final IMF-backed programme. “We are committed to ensuring this is the last time we seek such financial support from the IMF,” he said.
Ahead of the board’s approval, he assured the nation that the IMF agreement was in its final stages. “The IMF had set stringent conditions, and we have fulfilled them all,” he said, crediting China for its continued support and expressing gratitude to Saudi Arabia and the UAE for their essential contributions.
PM Shehbaz acknowledged the economic difficulties faced by his government when it took office but expressed confidence that the country was moving toward recovery. “With the grace of God and the combined efforts of the government and all institutions, we have overcome significant challenges,” he said.
Citing recent assessments by global rating agencies, the prime minister pointed to gradual improvements in key economic indicators, suggesting that Pakistan’s financial outlook was beginning to improve.
PM’s engagements at UNGA
PM Shehbaz also met with UN Secretary-General Antonio Guterres and Bangladeshi leader Muhammad Yunus on the sidelines of the UN General Assembly, on Wednesday.
The meeting with Professor Yunus, the chief adviser of Bangladesh’s interim government, was highly anticipated, coming after nearly 15 years of tensions between the two countries.
During their meeting, the PM extended an invitation to Dr Yunus to visit Pakistan, emphasizing the importance of regional cooperation and dialogue.
According to an official readout, the two leaders explored avenues to further bilateral relations, agreeing on the importance of collaboration at the bilateral, regional, and multilateral levels for the benefit of their peoples.
Separately, Bangladesh’s Prothom Alo newspaper reported that Prime Minister Sharif, US Assistant Secretary of State for Central and South Asia Donald Lu, and representatives of various nations attended a reception hosted by Yunus, celebrating Bangladesh’s 50th anniversary of UN membership.
Addressing the event, Professor Yunus called for international cooperation to support the aspirations of Bangladesh’s youth. He lauded the sacrifices made by the country’s youth in building a prosperous, discrimination-free society, noting that their leadership had brought revolutionary changes to Bangladesh.
Earlier, in a meeting with the UN secretary-general, PM Shehbaz stressed the need to implement the relevant UN Security Council resolutions on Indian-held Kashmir and ensure Kashmiris’ right to self-determination.
Briefing the Secretary-General on the situation in Indian-held Kashmir, the premier underscored Pakistan’s serious concerns over India’s actions in the valley and stressed the need to resolve the dispute to ensure lasting peace and stability in South Asia.
Published in Dawn, September 26th, 2024
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