Nations never progress on basis of loans: PM

LAHORE: Prime Minister Shehbaz Sharif on Friday said that dedicated efforts by all the state institutions to execute the Economic Revival Plan and sacrifice by the elite class were inevitable to ensure that the latest International Monetary Fund (IMF) programme signed by the government was the last one.

“(With the signing of the stand-by agreement) the risk of Pakistan’s default has been averted… This is not a moment of pride but a moment of thought as nations never progress on the basis of loans… This is not a way to live a life,” the prime minister said while addressing a press conference.

Accompanied by Finance Minister Ishaq Dar, Information Minister Marriyum Aurangzeb and Punjab Governor Balighur Rehman, Prime Minister Shehbaz said the situation necessitated the sacrifice by the elite class, not the common man who has already lost the purchasing power, the official news agency reported.

“The people should pray that this is the last IMF loan and Pakistan will not have to go back to the International Monetary Fund again,” he said after he witnessed the signing of the $3 billion stand-by agreement with the IMF.

Citing the success of Turkey and a neighbouring country to get rid of the IMF loans, the prime minister said Pakistan was rich with immense resources, and has the potential to progress and overcome economic challenges.

He told the newsmen that the government recently unveiled an Economic Revival Plan to get rid of loans and stabilise the economy through a “comprehensive” programme of enhancing investment in agriculture, mining and information technology, and boosting exports.

Mentioning the unnecessary impediments in the exploration of Chiniot ore and Reko Diq, the prime minister said the Economic Revival Plan would help bring in investment from the Gulf states to make Pakistan progress.

He said formulated by the federal government in collaboration with the Chief of Army Staff and provincial governments, the plan was envisaged to provide around four million jobs.

He said the IMF agreement followed months of negotiations which ended with a positive outcome.

Calling the agreement a major step, Prime Minister Shehbaz hoped that the country would start receiving money after the IMF Board meeting scheduled for July 12.

He thanked IMF Managing Director Kristalina Georgieva and her team for showing seriousness, particularly after his meeting in Paris, besides appreciating Finance Minister Ishaq Dar and his team for their untiring efforts to achieve the objective.

About his talks with the IMF chief last week, the PM said he apprised her of the government’s success to fulfil all of the Fund’s conditions even at the cost of political capital just to save Pakistan from defaulting.

The IMF MD raised concerns over the external financing gap of $2 billion, following which he asked the finance minister to make a “final effort” to address the IMF’s doubts.

He told the media of his subsequent meeting with the Islamic Development Bank head who later committed $1 billion in funds to Pakistan.

The prime minister said he again met the IMF chief who reassured him of moving forward together. He said their meeting in Paris proved to be an “ice-breaking and turning point”.

Criticising the previous government’s economic performance, Shehbaz Sharif said till 2018, under Nawaz Sharif’s government, Pakistan was progressing which was even recognised by the “worst critics” as the growth rate was at 6.2 percent.

Besides, he added, the country had joined the fast-developing nations as 20-hour load-shedding had come to an end, CPEC (China Pakistan Economic Corridor) was being implemented swiftly, and power and road projects were being executed.