In a marathon press conference after the signing of the new loan programme, Finance Minister Ishaq Dar said on Friday that the new $3 billion staff-level agreement with the International Monetary Fund (IMF) will help Pakistan turn towards growth.
Pakistan, IMF reach staff-level agreement on new $3bn stand-by arrangement
“The government has stabilised the economy and now it is time to focus towards achieving growth,” he said while addressing a joint press conference along with Prime Minister Shehbaz Sharif and Information Minister Marriyum Aurangzeb in Lahore.
Dar said $1.18 billion would be released for Pakistan within three to four days of the IMF board’s July meeting.
He said the government would take the country’s foreign reserves to $14 billion to $15 billion by the end of its tenure.
The finance minister credited PM Shehbaz for achieving a “breakthrough” with the IMF in Paris. He said he was reluctant to impose a further Rs215 billion in taxes in the revised budget and cut spending by Rs85 billion, but the prime minister had assured him of his support.
PM Shehbaz meets IMF MD Georgieva with hope of programme revival
He criticised people that were spreading rumours about Pakistan’s default chances, adding that such people should be countered.
“Pakistan is not a country to default … this country will never default. What is the reason for that? We were very active for a Plan B if, God forbid, the IMF [programme] did not work out,” he asserted.
PM Shehbaz slams previous govt’s ‘criminal negligence’
Earlier, PM Shehbaz addressed the press conference. He said: “Our interaction with the IMF which was under way for many months reached a very positive conclusion and you all must have read the IMF statement. I don’t need to say anything further on it.
“(But) never, forget this, we were forced to take this loan and it is my hope … that this is the last time Pakistan enters an IMF programme and we never have to take a loan again.
“The installments will start coming after the July board meeting. I am very thankful to the IMF managing director and her team that they showed sincerity after the Paris meeting and cooperated a lot. I am also thankful to Ishaq Dar and his team.”
PM Shehbaz hails IMF’s $3bn stand-by arrangement with Pakistan
PM Shehbaz said it was necessary to know the reasons for the “mountain of difficulties” that were faced by the people. He said Pakistan was fast progressing development-wise till 2018, adding that it was something even the then-government’s opposition could not deny.
The premier criticised the previous Pakistan Tehreek-e-Insaf (PTI) government for showing reluctance in engaging the IMF for talks and delayed the process for six months.
“Once the programme was eventually agreed to it was subsequently violated,” he said, adding that the “criminal negligence” displayed by the previous government during the Covid-19 pandemic by not availing things in a timely manner such as cheap LNG.
Commenting on the coalition government’s performance in the past year, he said it might have committed “honest mistakes” but also strove to tackle the country’s issues.
“Worst ever floods came [last year], all our energy was spent on tackling [that],” he added.
IMF agreement brings respite to country
The staff-level agreement with the IMF is on a $3bn stand-by arrangement, which is subject to approval by the lender’s executive board, the IMF said.
The long-awaited decision comes after an eight-month delay and offers some respite to Pakistan, which is battling an acute balance of payments crisis and falling foreign exchange reserves.