Pakistan’s status as a nuclear power was “being undermined” by constant requests for loans, Prime Minister Shehbaz Sharif said on Thursday as the country seeks its 24th International Monetary Fund bailout package for a permanent push towards longstanding structural reforms.

“The government initiatives will significantly enhance Pakistan’s economic standing,” he said while presiding over a cabinet meeting in Islamabad. “There is a desire for the policy rate to fall into single digits, which would benefit all sectors following a recent two per cent cut in interest rates.”

Pakistan and the IMF reached an agreement on the 37-month loan programme in July. The IMF said the $7 billion loan programme is subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners”.

The South Asian country has also taken loans from commercial banks, foreign lenders, and friendly countries to improve the economy.

Earlier in the day, the State Bank of Pakistan’s Monetary Policy Committee slashed the key policy rate by 200 basis points, bringing it down to 17.5% from 19.5%.

The premier added that the government has made “substantial efforts” regarding the IMF and discussions for the next programme were progressing well. “Once the programme is finalised, measures will be implemented to boost economic growth.”

He also highlighted the urgent need for reforms in the energy sector and the Federal Board of Revenue. The premier has given FBR Chairman Ahsan Langrial time to address issues within the board before scheduling a meeting to discuss target achievements.

PM Shehbaz praised the support from friendly and brotherly countries in relation to the IMF, likening their assistance to that of brothers and friends helping one another. He noted that such nations have once again stood by Pakistan, “echoing history.”

He stressed the need for Pakistan to free itself from the burden of loans and to stand on its feet. “As a nuclear power, constant requests for loans diminish the country’s significance. The government is diligently focusing on these issues and we will share further details when the time is right.”

He acknowledged the collective efforts made to meet the IMF’s demands, highlighting the contributions of various stakeholders, including the Chinese ambassador, who has played a significant role in such negotiations.

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Moreover, the prime minister condemned the Israeli atrocities in Gaza, stating that the “killings of innocent Palestinians mark one of the darkest chapters in human history.” He expressed “deep regret that the global conscience remains silent” while decisions from the United Nations, Security Council, and international courts have been disregarded by Israel.

Sharif highlighted the incident in which six UN volunteers were killed in Gaza due to Israeli aggression. He added that if such an event occurred in another country, it would have sparked international outrage. He also noted that 17 more Muslims were killed in Gaza on Thursday, reiterating the condemnation of Israeli brutality, “which has now escalated beyond mere denunciation.”

He stressed that the global conscience must take action and fulfil its role in addressing this crisis, insisting that the situation requires more than just condemnation.