PM Shehbaz engages World Bank, IMF leaders on Pakistan’s economic reforms

In high-profile meetings on the sidelines of the United Nations General Assembly (UNGA) in New York, Prime Minister Shehbaz Sharif held discussions with key international financial leaders including the World Bank and International Monetary Fund (IMF) to advance Pakistan’s economic reform agenda.

As per an official statement, Prime Minister met with Kristalina Georgieva, Managing Director of the IMF, on the sidelines of the UNGA.

“Appreciating the collaboration with IMF for successful Staff Level Agreement (SLA) for a 37-month, $7 billion Extended Fund Facility (EFF) for Pakistan, the prime minister highlighted the government’s commitment to implementing structural reforms and promoting private sector development,” read the statement.

On Wednesday, the IMF Executive Board considered Pakistan’s request for an Extended Arrangement under the Extended Fund Facility. It also authorized to immediately release the first loan tranche of nearly $1.1 billion, likely to be received by September 30.

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Meanwhile, during the meeting with the IMF chief, PM Shehbaz expressed appreciation for the global lender’s technical assistance and capacity-building programs, which have helped to strengthen the country’s institutions and improve its economic management.

Meanwhile, the IMF Managing Director expressed the Fund’s support for Pakistan’s efforts and “emphasized the importance of maintaining macroeconomic stability and promoting inclusive and sustainable growth”.

During the meeting, the two parties also discussed the urgent need to mobilize adaptation financing for climate change.

PM agreed to have Finance Minister Muhammad Aurangzeb take up this critical issue with senior management at the IMF during the Annual Meetings in October. “The two leaders agreed to strengthen cooperation between the government and the IMF to promote economic stability and growth,” read the statement.

In a separate meeting held on the sidelines of the UNGA in New York, the prime minister also met with Ajaypal Singh Banga, President of the World Bank.

Finance Minister Aurangzeb was also present in the meeting, stated the official statement.

During the meeting, the Prime Minister appreciated the World Bank’s continuous support to the Government of Pakistan in introducing critical economic reforms and addressing Pakistan’s economic challenges, including poverty reduction and infrastructure development.

“PM apprised the President of the government’s steps, involving policy, administrative and organizational reforms, to realize the full potential of the economy and to promote inclusive and sustainable economic growth,” read the statement.

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Shehbaz added that the government has also implemented reforms, particularly in energy, finance and revenue sectors and Pakistan looks forward to enhanced support from the World Bank for the government’s revitalized economic reforms agenda.

“He stressed upon exploring innovative financing solutions for Pakistan’s development projects, including water management, energy, and human development,” it said.

PM Shehbaz and the World Bank President reaffirmed their commitment to achieving Pakistan’s development goals, aligned with Vision 2025 and the United Nations’ Sustainable Development Goals.