PM Shehbaz hails friendly nation's assistance before IMF deal finalised

Prime Minister Shehbaz Sharif on Friday expressed gratitude to a “friendly nation” for providing financial assistance to Pakistan even before the finalisation of a deal with the International Monetary Fund (IMF) for the next tranche of the bailout programme, Aaj News reported.

“Our understanding was that the friendly country would chip in once the IMF deal is finalised. But to our surprise, that allied nation a few days ago conveyed to us that they were giving this [financial help] to us straight away,” the premier said while addressing a review meeting on the National Action Plan (NAP) in Islamabad on Friday.

He added that such gestures could never be forgotten.

“There are many such sincere contributions of theirs in the past for Pakistan,” he said, stressing that the country needed to put its house in order to come out of this situation.

“No one would come for Pakistan’s help if the country did not put its house in order,” the premier said.

PM Shehbaz said political stability is inevitable for economic growth.

“Unfortunately, a particular political faction is taking to the streets creating instability in the country.”

He said that the government had agreed on “tough conditions” set by the IMF because it put Pakistan before anything.

He said the coalition partners had put their political capital at stake for sake of the homeland.

“It is our paramount responsibility to play our role in course correction for the progress and development of the people of Pakistan and we accept this responsibility,” he said, expressing confidence that Pakistan will soon come out of the prevailing economic crisis.

The premier hoped that the deal with the IMF would soon be materialised.

Acknowledging Pakistan’s sacrifices in the fight against terrorism, he said around 83,000 people have laid down their lives.

He said security forces are determined to maintain peace and stability in the country.

Pakistan is currently grappling with a number of issues on the domestic front including rising terrorism and an economy battling a severe foreign currency shortage.

The low level of foreign exchange reserves has resulted in the currency hitting multiple lows this year.

Reuters adds:

Pakistan has to accept unwillingly the strict conditions of a deal with the IMF, PM Shehbaz said on Friday, to provide a lifeline for an economy in turmoil.

The PM was speaking to top security officials at his office in Islamabad in a meeting that was telecast live.

“We have to accept unwillingly the strict conditions for the IMF deal,” he said, adding an accord was still a “week, 10 days” away.

Pakistan has already taken a string of measures, which included adopting a market-based exchange rate; a hike in fuel and power tariffs; the withdrawal of subsidies, and more taxation to generate revenue to bridge the fiscal deficit.

Officials say the lender is still negotiating with Islamabad over power sector debt, as well as a potential rise in the policy rate, which currently stands at 17%.

The strict measures are likely to further cool the economy and stoke inflation, which stood at 27.50% in January.