- To prepare the budget in accordance with IMF demands, Prime Minister Shehbaz Sharif instructs the Finance Ministry.
In a recent development, Prime Minister Shehbaz Sharif has instructed the Ministry of Finance to ensure strict adherence to the parameters set by the International Monetary Fund (IMF) in the upcoming budget presentation on June 9.
This directive comes as the government strives to reach an agreement with the IMF and revive the derailed $6.5 billion bailout package. Contrary to speculations of a populist election year budget, the Prime Minister emphasized that Pakistan cannot afford to violate the fundamentals set by the IMF.
During a meeting between Prime Minister Shehbaz Sharif and Finance Minister Ishaq Dar, an air of optimism prevailed regarding the government’s ability to secure an agreement with the IMF.
Despite media reports suggesting the possibility of a budget catering to popular demands ahead of elections, an informed source emphasized that Pakistan must prioritize compliance with the IMF’s guidelines.
The source revealed that the Prime Minister displayed optimism following a lengthy telephonic conversation with the Managing Director of the IMF, Kristalina Georgieva, aimed at resuscitating the stalled bailout package.
Amidst a four-month deadlock over loan negotiations, Prime Minister Shehbaz Sharif proactively engaged with Kristalina Georgieva to revive the IMF program. Encouragingly, the discussions with the IMF Managing Director were constructive, leading to an agreement to share budget details with the IMF.
This positive development hints at the potential revival of the program, which bodes well for Pakistan’s economic stability. In fact, Prime Minister Shehbaz Sharif expressed his optimism regarding finalizing a deal with the IMF this month while speaking to Turkish media during President Recep Tayyip Erdogan’s inauguration ceremony in Ankara.
During his visit to Ankara, Prime Minister Shehbaz Sharif reassured the Turkish media that Pakistan had met all the conditions set by the IMF. He emphasized that some actions, typically approved after the board’s endorsement, were required to be fulfilled beforehand, and Pakistan had successfully met those requirements.
While expressing his hopefulness, the Prime Minister stated that the upcoming ninth review by the IMF would align with all terms and conditions, raising expectations for positive news in the near future.
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Prime Minister Shehbaz Sharif’s directive to the Ministry of Finance to prepare a budget in line with the IMF’s demands reflects Pakistan’s commitment to ensuring economic stability and fulfilling international obligations. The optimism surrounding the revival of the IMF program, bolstered by the Prime Minister’s positive discussions with the IMF Managing Director, Kristalina Georgieva, raises hope for an agreement in the coming month.
By prioritizing compliance with the IMF’s guidelines, Pakistan aims to pave the way for a sustainable economic future and attract much-needed foreign investment. As the budget presentation approaches, the nation awaits further developments with anticipation, hoping for favorable news that will strengthen Pakistan’s economic prospects.
