Pakistan needs another IMF bailout, says PM Shehbaz Sharif

ISLAMABAD: Prime Minister Shehbaz Sharif said on Thursday that Pakistan needed another long-term bailout from the International Monetary Fund (IMF) to stabilize its fragile economy, ARY News reported.

“New tranche of loan is likely to be received from IMF in a few days, however, we would need another programme,” he said while addressing the session of the Special Investment Facilitation Council (SIFC) apex committee attended by civil-military leadership.

The comments came a day after the IMF agreed a provisional or staff-level agreement with Islamabad which, if approved by its board, would disburse the last tranche of $1.1 billion under an existing $3 billion standby arrangement.

He said that the International Monetary Fund (IMF) concluded the review for issuance of the last tranche of US$1.1 billion that hopefully be received by next month.

“We will succeed gradually in breaking the begging bowl and coming out of the debt trap with the reforms,” the prime minister said. He also sought the support of all political parties and the provincial governments to successfully implement the agenda of macroeconomic stability in the country.

“We all have to work together. With the support of all the provinces, we will together resolve all the challenges and difficulties faced by the country”, PM Shehbaz Sharif added.

The SIFC meeting was attended by Chief of Army Staff (COAS) General Asim Munir, former Caretaker Prime Minister Anwaarul Haq Kakar, CM Punjab Maryam Nawaz, CM Balochistan Sarfraz Bugti, CM Sindh Syed Murad Ali Shah, CM Khyber Pakhtunkhwa Ali Amin Gandapur.

It is pertinent to mention here that the IMF mission that visited Islamabad for five days on the last review of the stand-by programme said Pakistani authorities expressed interest in yet another bailout.

The stand-by arrangement expires on April 11.

Bloomberg reported in February that Pakistan planned to ask for a loan of at least $6 billion.

Ahead of the stand-by arrangement, Pakistan had to meet IMF conditions including revising its budget, and raising interest rates, as well as generating revenue through more taxes and hiking electricity and gas prices.