Prime Minister Shehbaz Sharif has reiterated that the IMF deal would be signed this month as the country has fulfilled all conditions of the international lender to unlock the remaining amount of the agreement.
“From our side, we have fulfilled all conditions,” he said at the Sabzara Sports Complex event in Lahore on Sunday. “Now, I hope that the IMF deal will be signed this month and as a result of this we will receive installments of billions of dollars. I am hopeful. But if it is delayed then hopefully I will give an address to you.”
Pakistan’s IMF programme runs out this month with about $2.5 billion in funds yet to be released as it struggles to strike an agreement with the lender, as it grapples with record inflation, fiscal imbalances, and critical levels of reserves that cover barely a month’s worth of imports.
He spoke about his last conversation with the IMF managing director which was “long”. The premier claimed that he assured that the government would meet the conditions for the loan and provide the required information about the budget.
“Pakistani nation is vibrant and is capable of meeting all the coming economic challenges in case of any further delay in the IMF programme,” he said.
Despite all the economic difficulties, the premier added that the federal government raised the salaries of employees by 30 to 35 per cent, increased pension by 17 per cent and increased minimum wage from Rs25,000 to Rs32000. “The government was aware of the economic difficulties of the poor people.”
He claimed that major funds were allocated for the sectors of agriculture and information technology in the federal budget.
Bilateral creditors made up $37 billion of Pakistan’s debt in the fiscal year 2021, out of which $23 billion is owed to China, according to an IMF country report released last year.
In order to unlock funding under its long delayed 9th review, Pakistan is required to secure firm and credible financing commitments to close the $6 billion gap. The government has only been able to get commitments of $4 billion, mainly from Saudi Arabia and the United Arab Emirates.
The country has also rolled over debt from China as its reserves reach critical levels.
Shehbaz went on to add that economic stability was not possible without political stability and vowed to put Pakistan on the path of “greater progress and prosperity”.
He said the incidents of May 9 were acts of hostility against the nation, alleging that the military installations were attacked and the Jinnah House was burned down at the instigation of Imran Khan.
“The law will take its course and all those responsible for the incident of May 9 would be punished so that these crimes could not be repeated again,” PM Shehbaz said and assured that innocent would be treated fairly.
