Prime Minister Shehbaz Sharif on Friday expressed his optimism regarding Pakistan’s chances of striking a deal with the International Monetary Fund (IMF). He assured that all prior conditions set by the IMF have been met, and he anticipates the resumption of the stalled bailout programme.
During his address to the federal cabinet, ahead of the fiscal year 2023-24 budget revelation, the Prime Minister emphasized the importance of political stability for sound economic growth. He acknowledged the impact of climate change-induced floods, which inflicted losses exceeding $30 billion on the economy. Additionally, the Ukraine crisis has escalated commodity prices in the global market.
PM Shehbaz highlighted the government’s awareness of the inflation-related struggles faced by the common man, emphasizing the need to support the salaried class and pensioners to meet their basic requirements.
Despite the challenges faced in the last 14 months, the government has been actively dealing with the IMF, post-flood recovery efforts, and global inflation. The Prime Minister expressed satisfaction with the reduction of the current deficit to $3.3 billion in the past 10 months and expressed hope for growth in the agriculture sector.
To promote transparency in foreign currency transactions, the government has taken steps to curtail undesirable outflows of foreign currency from Pakistan. According to a report by Bloomberg which cited Fitch Ratings, further devaluation of the Pakistani rupee is not expected due to subsiding pressure and stable reserves.
Collaboration between the IMF and Pakistani authorities is underway to address concerns regarding the currency market and other matters before resuming the ongoing bailout program. However, time is limited, with the program originally set to expire in June and significant progress unlikely before the upcoming general elections scheduled for October.
The successful conclusion of the IMF program review is crucial for Pakistan to secure funds, prop up the economy, and meet impending debt payments. The government’s commitment to meeting IMF conditions and the hope for a favorable agreement underline the Prime Minister’s confidence in Pakistan’s economic prospects.
