ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday vowed to make the next International Monetary Fund (IMF) program the last one needed to cure his country’s ailing economy during a televised address that summarized the 100-day progress of his administration, which came into power after the general elections in February.
Sharif delivered the speech just a few days after his government presented its first $67.76 billion federal budget, setting highly ambitious revenue generation targets without specifying significant cost-containment measures.
Pakistan is also engaged in negotiations with the IMF for a longer-term bailout of around $8 billion, following a short-term loan of $3 billion that helped the country avert a sovereign debt default in June last year. Federal Minister for Finance and Revenue Muhammad Aurangzeb announced in a post-budget news conference this week that the country was hopeful to sign a staff-level agreement with the international lending agency in July.
The prime minister said in his speech his government had taken measures to attract foreign investment and enhance trade with other countries to end the borrowing cycle and find a way out of the debt trap.
“Pakistan will gradually escape the life of debts,” he said during the address. “It is difficult, but not impossible. There are examples in the modern world where many countries approached the IMF only once, and then never returned to it for the rest of their lives.”
“We have gone there 24 or 25 times,” he continued. “Today, I promise you that, God willing, if we strictly follow our program and fully commit to the goals we have set, then this program we are taking might be the last IMF program in the history of Pakistan. After this, we will stand on our own feet and surpass our neighboring countries in the race for development.”
The prime minister said his administration had already brought down inflation from 38 to 12 percent.
Sharing his vision for rapid economic progress, he said the government would not run businesses or enterprises but facilitate the private sector to take the lead. He also noted that his administration was working toward a leaner governance structure and reduced expenses.
“It is the primary duty of my government to eliminate royal expenditures,” he said. “All such ministries and institutions that have become a burden on the nation instead of serving it, and have not only incurred unjust expenses but have also become centers of corruption, their elimination has now become inevitable,” he continued. “It is my foremost duty to abolish them. Therefore, a ministerial committee has been formed on this matter, and I assure you that, God willing, I will bring you positive results within the next two and a half months.”
Sharif said his government was working to create a business-friendly environment and had arranged for 300,000 young Pakistanis to receive information technology training in China every year.
He also noted it had brought down the power tariffs for industries by Rs10.50 per unit to bring down production costs and make Pakistani exports more competitive in international markets.
PM Sharif pledges next IMF bailout to be Pakistan’s last in 100-day progress address
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PM Sharif pledges next IMF bailout to be Pakistan’s last in 100-day progress address
- The prime minister envisions leaner governance structure, promises solid results within two and a half months
- He says the government will send 300,000 Pakistanis for IT training to China, make exports more competitive
