PM Shehbaz emphasizes honoring IMF commitments to ensure economic stability

Prime Minister Shehbaz Sharif on Wednesday underscored the importance of adhering to International Monetary Fund (IMF) commitments, affirming that the government cannot prematurely exit the program. 

He stated that Pakistan would part ways with the IMF only when the country is economically stable and self-reliant.

Addressing the business community at the Pakistan Stock Exchange (PSX), the premier highlighted Pakistan’s progress under the $7 billion, three-year IMF aid package agreed upon in July 2024. 

He noted the nation’s slight improvement in tax-to-GDP ratio, reaching 10.8%, surpassing the IMF target of 10.6%, but emphasized the need for further advancements.

He further emphasised the need for investment, beyond meeting tax targets, citing the State Bank of Pakistan’s reduction of interest rates from 22% to 13% as a step toward fostering investment.

PM Shehbaz stressed the importance of export-led growth and foreign direct investment (FDI), urging stakeholders to provide actionable strategies to achieve these goals. 

He also called for a cautious but bold approach to economic expansion, emphasizing the need to avoid the boom-bust cycles that have plagued the country in the past.

The prime minister highlighted the transparency in ongoing privatization efforts, using the example of Pakistan International Airlines (PIA) and the nearly concluded process for Islamabad Airport. He invited critics to propose alternatives to Pakistan’s growth strategy, emphasizing that sustainable growth is the only viable path forward.

During his day-visit to Karachi, PM Shehbaz also inaugurated the Federal Board of Revenue (FBR)’s Faceless Customs Assessment System at Karachi Port Trust, aimed at improving transparency in customs processes.

Additionally, he attended the launch of the Aga Khan University Manual of Clinical Practice Guidelines.

The premier’s visit coincided with a sharp decline in the KSE-100 index, which dropped by 1,904.23 points (1.64%) to close at 114,148.45. 

Despite the setback, the prime minister expressed optimism about the country’s economic future and reaffirmed the government’s commitment to long-term stability.