ISLAMABAD: Prime Minister Shahbaz Sharif on Friday expressed hope that the International Monetary Fund (IMF) will resume the stalled bailout program as Pakistan has fulfilled all the preconditions despite economic difficulties.
Talking to the cabinet before the budget meeting, Shahbaz Sharif said that the ninth review will be completed soon. He said that political instability is the most dangerous factor in the destruction of the economy. State institutions were aligned with the government to ensure that the country was stable enough to move forward. He said that without political stability even a budget of billions cannot improve the economic situation. “There is a concerted effort to promote political instability in the country,” he said, adding that last year’s political protests had discouraged both foreign investment and local businessmen. Shahbaz Sharif said that his government has fulfilled all the conditions set by the IMF, but the staff-level agreement is yet to be signed. He had asked for a verbal commitment from the head of the IMF, so that he could move forward while removing other obstacles to the budget.
Shahbaz Sharif said that the previous government had abandoned the IMF program. He also held Pakistan Tehreek-e-Insaaf responsible for destroying the economy and said that his government had worked hard to rectify the situation in the last 14 months. The Prime Minister expressed satisfaction over the reduction of the current deficit to $3.3 billion in 10 months and expressed hope that the agriculture sector would develop. He said it was a matter of satisfaction that the country was able to bring down the current account deficit to $3.3 billion despite internal and external challenges. He said that inflation is high everywhere in the world today. “The challenge before us is to make life easier for the common man.” Shahbaz Sharif said that the government had consulted traders and exporters before finalizing the budget. He further said that he has come to the conclusion that the agricultural sector in particular can give Pakistan high returns. The Prime Minister said that the youth are losing interest in agriculture after getting education but the government has planned new initiatives to encourage agriculture. It will also reduce rural-urban migration, he added.
Shehbaz said that we should consider increasing the salaries and pension so that the common man can survive in this economy. He said that the government is hopeful of signing a new gas agreement to meet Pakistan’s energy needs. Referring to the catastrophic floods caused by climate change, the prime minister said it had cost the country’s economy more than $30 billion. The crisis in Ukraine also pushed up commodity prices in the international market. The Prime Minister also appointed Rohail Sheikh as his advisor and expressed hope that he will perform his duties diligently.
