PM urges end to Pakistan’s reliance on IMF loans

Prime Minister Shehbaz Sharif reiterated the need for Pakistan to break free from its reliance on the International Monetary Fund (IMF), stating that countries “do not prosper” under IMF’s programmes.

The prime minister made these remarks while addressing the launching ceremony of the Prime Minister’s Digital Youth Hub in Islamabad on Thursday. He said that Pakistan’s debt has risen in the last 77 years.

“I pray that the current IMF programme is the last in Pakistan’s history. Countries do not prosper under IMF programmes, they can only stabilize their economy.

“We have achieved this economic stability,” he said.

His remarks come after the IMF staff and the Pakistani authorities on Wednesday reached a staff-level agreement (SLA) on the first review of the $7 billion Extended Fund Facility (EFF) programme and on a new arrangement of $1.3 billion under the Resilience and Sustainability Facility (RSF).

The agreement is subject to approval of the IMF’s Executive Board. Upon approval, Pakistan will have access to about $1 billion (SDR 760 million) under the EFF, bringing total disbursements under the programme to about $2 billion.

“This is a step towards IMF’s Governing Bodies meeting in May, where they will approve our next tranche of $1 billion” PM Shehbaz said on Thursday.

“However, this $1 billion is a loan, we have not earned it,” he added, urging the youth to turn this debt-driven existence into one of dignity by strengthening the country’s economy.

He stated that by equipping young people with skills in Information Technology (IT), Artificial Intelligence (AI), and vocational training, they can become a valuable national asset.

“If we invest in training and modern technology for our youth, Pakistan can become one of the most developed nations in just a few years,” PM Shehbaz said.

Talking about the Rs34 billion recovered recently from the banking sector by tax authorities, the prime minister said that the government achieved this by “breaking the collusion between FBR and the taxpayers”.

Days ago, the Lahore High Court vacated a stay order regarding tax on windfall income of banks, which resulted in a benefit of Rs11.5 billion to the national exchequer. While on this account, overall the exchequer accrued a financial benefit of Rs34.5 billion in a month.