Prime Minister Shehbaz Sharif has claimed that International Monetary Fund (IMF) Managing Director Kristalina Georgieva faced internal opposition before approving Pakistan’s Extended Fund Facility (EFF) but proceeded with the decision despite dissenting voices within the lender, Business Recorder reported this citing sources.
Addressing a federal cabinet meeting on February 12, the prime minister shared details of his discussion with Georgieva on the sidelines of the World Governments Summit in Dubai. According to him, the IMF chief praised Pakistan’s economic team and assured that the country’s plan to lower power tariffs would be reviewed seriously.
Shehbaz highlighted that he had emphasised the need to reduce production costs to drive industrial growth and economic expansion. He said Georgieva responded positively and invited Pakistan to submit a formal plan for lowering electricity prices, dismissing concerns that the IMF would reject such measures outright.
Following this, the prime minister instructed Deputy Prime Minister Ishaq Dar to formulate a comprehensive strategy for reducing energy costs to present to the IMF.
Shehbaz has already directed the Power Division to implement a Rs7 per unit reduction in electricity tariffs across all consumer categories, including industries, starting April 1, 2025. A committee led by Ishaq Dar is working on the tariff reduction plan, with the Central Power Purchasing Agency (CPPA-G) providing an initial assessment and identifying potential savings from revised contracts with independent power producers (IPPs).
The prime minister further informed the cabinet that Pakistan had successfully imposed an agricultural income tax across all provinces in line with IMF requirements, a step previously considered unachievable. He added that Georgieva expressed satisfaction with Pakistan’s reform progress and indicated her willingness to visit the country.
Commending the economic team’s efforts in negotiating the IMF deal, Shehbaz praised key cabinet members, including the finance and power ministers, as well as the Chief of Army Staff, for their role in securing favorable terms. He also acknowledged the contributions of senior bureaucrats, including the finance and power secretaries and the Federal Board of Revenue chairman, urging them to continue their efforts to stabilize and revive the economy.
