Pakistan needs another IMF loan for stability, says PM

Prime Minister Shehbaz Sharif said Tuesday that Pakistan needs another loan programme from the International Monetary Fund (IMF) to stabilise its fragile economy, ARY News reported.

PM Sharif said this while addressing a ceremony to encourage taxpayers in the country in Islamabad.

The prime minister said the government is compelled to enter into a new IMF deal for the purpose of stability, ARY News reported.

However, he said that along with the IMF programe, the government will focus on fostering growth, creating job opportunities, and addressing the issue of inflation.

Shehbaz Sharif said the federal government in collaboration with the provincial governments will create enabling circumstances for the private sector and address their problems. He said that refunds to the tune of sixty-five billion rupees have been made to the exporters, expressing the determination that in future the refunds will be made in a timely manner. He said we will also go towards providing electricity to the industries on competitive rates in order to enhance their productivity.

He said the platform of Special Investment Facilitation Council (SIFC) has been established to give impetus to the investment. He said the second phase of CPEC will be taken forward.

As regards tax reforms, the Prime Minister said the FBR will be totally restructured. He said consultants will be hired next month for complete digitalisation of the tax collection body. Referring to low tax to GDP ratio, he said we will have to enhance the tax base.

The Prime Minister stated that the leading taxpayers and exporters are the heroes of this country. He announced that the recipients of awards, consisting of exporters and taxpayers, will be issued blue passports. The comments came after the IMF agreed to a staff-level agreement with Islamabad which, if approved by its board, would disburse the last tranche of USD 1.1 billion under an existing USD 3 billion standby arrangement.

Notably, the IMF mission that visited Islamabad for five days on the last review of the stand-by programme said Pakistani authorities expressed interest in yet another bailout.The stand-by arrangement expires on April 11.

Ahead of the stand-by arrangement, Pakistan had to meet IMF conditions including revising its budget, and raising interest rates, as well as generating revenue through more taxes and hiking electricity and gas prices.