ISLAMABAD: Managing Director, International Monetary Fund (IMF), Kristalina Georgieva, reportedly stated that there were dissenting voices within the IMF on Extended Fund Facility (EFF) for Pakistan but she approved the program despite “internal “concerns.
Well informed sources told Business Recorder that this claim was made by Prime Minister Shehbaz Sharif, during a federal cabinet meeting held on February 12, 2025.
According to sources, Prime Minister apprised the Cabinet of his meeting with IMF’s Managing Director, Kristalina Georgieva on the sidelines of the World Governments Summit in Dubai during which she appreciated immensely Pakistan’s economic team.
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“When the IMF was discussing internally the Extended Fund Facility for Pakistan, there were many dissenting voices, and many amongst them had expressed concern, but she had stood firm and approved the programme,” the sources quoted the Prime Minister Sharif as saying.
The Prime Minister, sources said, highlighted that Managing Director had assured that Pakistan’s plan for lowering power tariffs would be given due consideration.
He stated that he had stressed upon her that industrialisation and economic growth could only take place if production costs were reduced, adding that she had given a positive response to his proposition and had asked for a plan from the Pakistan side for lowering electricity prices, dispelling the concern that a reduction in power tariffs would not be acceptable to the IMF.
On this note, Prime Minister advised the Deputy Prime Minister to prepare a comprehensive plan to lower energy costs that could be taken up with the IMF.
Prime Minister Shehbaz Sharif has already directed the Power Division to cut electricity tariffs by Rs 7 per unit for all consumer categories, including the industrial sector across the country including Karachi. A tariff reduction committee headed by Ishaq Dar is already working on power tariff reduction.
Prime Minister wants reduction in electricity from April 1, 2025. Central Power Purchasing Agency –Guaranteed (CPPA-G), the market operator, has shared initial working with the Committee along with savings from the revised/ terminated contracts with the IPPs.
The Prime Minister also apprised the Cabinet that he had informed the Managing Director IMF that all the provinces had imposed agricultural income tax as agreed with the IMF, something that had been quite inconceivable in the past.
He further shared that the Managing Director was both impressed by and satisfied with Pakistan’s progress on reforms, and had also expressed her desire to visit Pakistan.
Mentioning the efforts of the economic team in the context of the IMF programme, the Prime Minister lauded the hard work the team had done in negotiating the best possible conditionalities for Pakistan.
He lauded all the Cabinet Members, in particular the Deputy Prime Minister, Minister for Finance and Revenue, Minister for Power, Minister for Defence, Minister for Information and Broadcasting, as well as the Chief of Army Staff, who had accompanied him during the meeting. He also commended all the concerned Secretaries, especially the Finance Secretary, Secretary Power, Chairman FBR and other officers for their untiring efforts to stabilise and revive the economy.
He said that they had earned this appreciation by their hard work, but that now even harder work was required. He quoted the example of his late father who stressed the importance of dedication, commitment and ceaseless effort.
Copyright Business Recorder, 2025
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