Prime Minister Shehbaz Sharif has hinted at a three-year extension of Pakistan’s International Monetary Fund IMF Programme, indicating the likelihood of receiving a new loan tranche in the near future. Addressing the Special Investment Facilitation Council’s apex committee, attended by civil-military leadership, Sharif underscored the imperative of unity among elected lawmakers from various political parties for the country’s progress and prosperity.
“The new tranche of the loan is expected from the IMF shortly, but we anticipate the need for another programme,” stated Prime Minister Shehbaz Sharif during the session, emphasizing the challenges facing the national economy.
Sharif commended the collaboration of civil-military leadership and political parties in prioritizing the nation’s interests over political differences. He credited the formation of the Special Investment Facilitation Council (SIFC) to Chief of Army Staff (COAS) General Syed Asim Munir’s pivotal role, highlighting its significance in facilitating foreign investments and addressing hurdles over the past eight months.
Reforms under the IMF programme were emphasized by the prime minister as vital for achieving macroeconomic stability. He highlighted the disparity between current revenues and the necessary revenue target, stressing the need to enhance revenue generation to Rs13 to 14 trillion from the existing Rs9 trillion.
Addressing economic challenges, Sharif outlined plans for digitizing the Federal Board of Revenue (FBR) to enhance efficiency and combat revenue leakages, particularly electricity theft, which inflicts an annual financial dent of Rs400 billion on the national exchequer.
The prime minister underscored the urgency of addressing the soaring circular debt in electricity and gas sectors, which has reached Rs5 trillion. He called for collaborative efforts among federal and provincial governments, setting aside political differences to address national crises effectively.
Furthermore, Sharif urged expedited privatization of loss-making state-owned entities like Pakistan International Airlines (PIA), burdened with a debt of Rs825 billion. He acknowledged the necessity of making tough decisions to alleviate financial strain, cautioning against repeating past mistakes of granting subsidies to elites and emphasizing the need to shift financial burdens to those capable of bearing them.
