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It would be shame to go back to IMF again after 3 years, says PM

by News Desk
July 8, 2024
in Top Stories
Prime Minister Shehbaz Sharif

APP27-080724 QUETTA: July 08 - Prime Minister Muhammad Shehbaz Sharif talking to the media after the signing of agreement to solarise agricultural tubewells of Balochistan. APP/TZD

QUETTA: Lamenting that the debt burden has stalled the future of our generations, Prime Minister Shehbaz Sharif said it will be a big shame if Pakistan has to return to the International Monetary Fund (IMF) again after three years.
“To break free from this cycle of debt, the federal and provincial governments along with relevant institutions must work together,” the prime minister said at a signing ceremony to launch a major initiative to solarize agricultural tube wells in Balochistan. on Monday.
However, if we fail to make the tough decisions, we will find ourselves looking to the IMF for help again, he added.
Pakistan is seeking a staff-level deal this month on a more than $6 billion IMF bailout after it addresses all of the Washington-based lender’s demands in its annual budget.
In addition, the country’s debt has soared since the mid-2000s as authorities have failed to invest a flood of loans from international bondholders and countries including China and the Gulf states into productive, export-oriented sectors.
Finance Minister Muhammad Aurangzeb warned on Sunday that Pakistan would continue to seek an IMF bailout “if it fails to raise tax revenue”.
The financial czar said he was “relatively confident” he would reach a staff-level agreement with the global lender this month on an estimated $6 billion to $8 billion loan.
“But it won’t be our last Fund program unless we increase our tax revenue,” the finance minister told the Financial Times.
The federal government last month presented a tax-laden budget of Rs 18.877 trillion for fiscal year 2024-25 (FY25), aimed at boosting public revenue and satisfying the IMF, which has repeatedly called for better tax collection.
The budget aims to raise Rs13 trillion by next July, roughly a 40% increase over the current financial year, to reduce a crushing debt burden that has seen 57% of government revenue gobbled up by interest payments.
Prime Minister Shehbaz said that approaching the IMF is a must and said that Pakistan must finalize the agreement with the IMF this month.
“Tomorrow in Islamabad I will discuss measures to provide relief to the poor. We will accept anyone who genuinely cares for the welfare of Balochistan and Pakistan.
Prime Minister Shehbaz further said that security and maintenance of law and order are essential for investments to flow into Balochistan and Khyber Pakhtunkhwa.
About Gwadar, he said, “I am not complaining, but the Safe City project there has been stopped. Gwadar, by the grace of God, will prove more beneficial than the Reko Diq mines. We are determined to transform Gwadar into a magnificent port.

Tags: Election 2024IMRAN KHANInternational Monetary Fund (IMF)ISLAMABADIsraelNawaz SharifPAKISTANpalestinePPPPrime Minister Shehbaz Sharifpublic purveiw
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