Prime Minister Shehbaz Sharif reaffirmed his government’s commitment to fulfilling the conditions of the International Monetary Fund (IMF) loan programme, expressing hope that this would be the last time Pakistan would need to seek such financial assistance. Speaking at a federal cabinet meeting on Tuesday, the Prime Minister outlined the government’s efforts to meet the IMF’s stringent requirements to secure the $7 billion, 37-month loan agreement.
“We are fully taking steps to implement the conditionalities set by the IMF,” Prime Minister Sharif said. “Our case will be presented to the Executive Board for approval, and, God willing, this will mark the beginning of a new journey. It is a difficult path, but it is not impossible.”
The Prime Minister emphasised the government’s determination to work tirelessly to navigate through these economic challenges. “We are working day and night with commitment,” he added, underscoring the arduous nature of the task ahead.
In a positive development, the prime minister highlighted a significant decrease in inflation, noting that the consumer price index (CPI) had dropped to single digits in August. “The burden of inflation is gradually reducing,” he stated. “In August last year, the inflation rate was around 27 percent, but now it has come down to 9.6 per cent, marking a 34-month low.”
The prime minister commended the Ministry of Finance and the State Bank of Pakistan for their efforts in achieving this milestone. However, he cautioned that there was still a long way to go. “The journey is long, and we must move forward quickly. Our goal is to bring stability and growth to the economy,” he remarked.
The IMF had earlier stated that the loan programme, which still requires approval from its Executive Board, is designed to help Pakistan achieve macroeconomic stability and lay the groundwork for stronger, more inclusive, and resilient growth. The programme includes comprehensive reforms, particularly aimed at broadening the country’s tax base.
Prime Minister Sharif acknowledged the challenges ahead but reiterated his hope that this would be the last time Pakistan would need to resort to the IMF for financial assistance. The government is focussed on creating a sustainable economic environment that will reduce the need for future bailouts and foster long-term growth and stability.