Resumption of the long-awaited International Monetary Fund (IMF) loan programme has urged the government to fasten its seatbelt for an economic ride towards prosperity. In this regard, Prime Minister Shahbaz Sharif stated that although IMF programme was critical to our economy, but the struggle does not end here. He emphasized that hard work is the condition to make it “self-sufficient.”
He said, “Pakistan must break out of economic straitjacket, which is only possible through structural reforms.”
Revival of IMF program, though critical to our economy, is not an end in itself. It offers a pathway to reorient our economy. We will have to work hard to make it self-sufficient. Pakistan must break out of economic straitjacket, which is only possible through structural reforms.
— Shehbaz Sharif (@CMShehbaz) August 30, 2022
The statement came after the IMF revived the Extended Fund Facility (EFF) programme for Pakistan as its Executive Board approved the disbursement of $1.17 billion for seventh and eighth tranches.
Following the Executive Board’s discussion on Pakistan, Ms. Antoinette Sayeh, Deputy Managing Director, and Acting Chair, issued the following statement:
“Pakistan’s economy has been buffeted by adverse external conditions, due to spillovers from the war in Ukraine, and domestic challenges, including from accommodative policies that resulted in uneven and unbalanced growth.
“Steadfast implementation of corrective policies and reforms remain essential to regain macroeconomic stability, address imbalances and lay the foundation for inclusive and sustainable growth.”
She also said, “the tightening of monetary conditions through higher policy rates was a necessary step to contain inflation. Going forward, continued tight monetary policy would help to reduce inflation and help address external imbalances.”
The Acting Chair emphasized, “maintaining proactive and data-driven monetary policy would support these objectives.”
On this development, the premiere also appreciated his government’s efforts on social media, notably commended the performance of Finance Minister Miftah Ismail.
He said, “the formal resumption of an IMF program is a major step forward in our efforts to put Pakistan’s economy back on track.”
“It is outcome of an excellent team effort. I commend Finance Minister Miftah Ismail & his team and other stakeholders for their hard work,” PM added.
The formal resumption of an IMF program is a major step forward in our efforts to put Pakistan's economy back on track. It is outcome of an excellent team effort. I commend Finance Minister Miftah Ismail & his team and other stakeholders for their hard work.
— Shehbaz Sharif (@CMShehbaz) August 29, 2022