PM praises friendly nations' support as Pakistan finally included in IMF board agenda

Prime Minister Shehbaz Sharif emphasized the importance of eliminating debt and expressed optimism about Pakistan’s future, stating, "We have to get rid of debts; Pakistan must stand on its own feet." Speaking at a federal cabinet meeting, he hailed the recent progress made in talks with the International Monetary Fund (IMF) on securing a 37-month Extended Fund Facility (EFF) and lauded the support from friendly nations, which helped Islamabad move forward in obtaining the bailout package.

The IMF has scheduled a meeting for September 25 to review the $7 billion EFF agreement reached in July between Pakistan and the global lender. This program is subject to approval from the IMF Executive Board and confirmation of the necessary financing assurances from Pakistan’s development and bilateral partners. Prime Minister Sharif praised countries that have once again stepped forward to assist Pakistan, though he did not disclose specifics. “They have repeated history by supporting Pakistan,” he said, adding that this support was vital in securing the bailout.

Pakistan was required to raise $2 billion in external financing from bilateral and commercial lenders, a target that has already been met, according to the State Bank of Pakistan (SBP) Governor Jameel Ahmad. Ahmad confirmed that all necessary financing had been arranged, eliminating any remaining obstacles to the IMF agreement.

Minister for Finance and Revenue Muhammad Aurangzeb also welcomed the development, expressing confidence that all matters with the IMF had been resolved amicably. He stated that the country’s economy was on a growth trajectory after stabilizing, with inflation rates decreasing. The recent 2% cut in the policy rate by the SBP is expected to boost investment and create employment opportunities, he added.

Pakistan has historically relied on IMF programs to stabilize its economy. The prime minister noted that repeated requests for loans could harm the nation’s standing as a nuclear state, stressing the importance of self-reliance. He expressed hope that this would be the last IMF package Pakistan would need.

In recent months, Pakistan has undertaken significant reforms to meet the IMF’s requirements, including raising its tax revenue target by 40% and increasing energy prices. The country has also received credit rating upgrades from Moody’s and Fitch, signaling improved financial stability.

Sharif concluded by commending the State Bank’s decision to reduce the policy rate, calling it a crucial step toward boosting investor confidence and fostering economic activity. He hoped for further reductions in both the policy rate and inflation, aiming for single-digit figures in the near future.