PM Shehbaz optimistic about securing IMF deal this month

LAHORE: Prime Minister (PM) Shehbaz Sharif on Sunday expressed his optimism regarding Pakistan’s chances of striking a deal with the International Monetary Fund (IMF) this month, saying that the government has accepted all the global lender’s conditions and implemented them, ARY News reported.

The prime minister made these remarks while addressing an inauguration ceremony of a Sports Complex in Lahore.

PM Shehbaz regretted that the previous government of Pakistan Tehreek-e-Insaf (PTI) reneged its agreement with the International Monetary Fund (IMF) that led to “very serious economic situation”.

Recalling his telephonic conversation with the international lender’s Managing Director (MD), the prime minister expressed the confidence that the IMF’s 9th review would “sooner or later be approved” as they had met all the demands.

However, the premier said, if the agreement delays further due to ‘any reason’, he will apprise the nation.

Holding PTI responsible for the ‘current economic crises’, PM Shehbaz Sharif said that the previous rulers ‘deliberately’ did not procure gas which according to him was available at cheaper rates during COVID-19 pandemic.

“The previous rulers failed to provide relief to the people of Pakistan,” he said, adding that their ‘only focus’ was to put their opposition behind bars. “They [PTI rulers] could avert the current economic crises by taking some relief measures instead of putting the opposition behind bars,” he added.

Referring to May 9 incidents – wherein military installations including Corps Commander House Lahore came under attack, PM Shehbaz Sharif said the ‘events were nothing short of enmity against country’.

“This group wearing a political cloak has done what enemies could not do in 75 years, all in the lust for power,” the premier added, vowing that all the planners and rioters will be brought to justice.

Speaking of the relief measures taken in Budget 2023-24, the prime minister said that the government raised the salaries and pensions of government employees despite the tough economic conditions.

“Moreover, the government also increased the minimum wage of a labour from Rs25,000 to Rs32,000,” PM Shehbaz said, adding that they took every possible measure to provide relief to the public.

Pakistan’s economy turmoil

Pakistan’s economy is in turmoil amid financial woes and the delay in an agreement with the International Monetary Fund (IMF) that would release much-needed funding crucial to avoid the risk of default.

The budget is being keenly watched as the government is caught between a painful fiscal adjustment reforms agenda set by the IMF, and to make room for any relief to the people ahead of a national election scheduled in early November.

For the outgoing fiscal year 2022-23, which ends on June 30, the country’s GDP growth fell to 0.29% against last year’s annual budget target of 5%, and a revised projection of 2% by the central bank.

Inflation posted at 38% in May is the highest in Asia. The IMF’s $1.1 billion funding, stalled since November, is critical for Pakistan to unlock other bilateral and multilateral financing to avert a debt default.