Fear of default now over, IMF accord soon: PM Shehbaz

Published March 15, 2023
Prime Minister Shehbaz Sharif addresses a delegation of journalists in Islamabad. — DawnNews screenshot
Prime Minister Shehbaz Sharif addresses a delegation of journalists in Islamabad. — DawnNews screenshot

Prime Minister Shehbaz Sharif said on Wednesday that the threat of Pakistan defaulting on its debts was “now over” and that a staff-level agreement with the International Monetary Fund (IMF) would happen “soon”.

Addressing a delegation of Council of Pakistan Newspapers Editors (CPNE) in Islamabad, the premier said his government had successfully managed to save the country from default.

He said all the efforts were being made to pull out the country from an economic slump.

“It has been 11 months since the coalition government took over and economically, Pakistan has moved past the fear of default but the agreements that were made with the IMF will affect citizens for some time to come,” PM Shehbaz said.

He accused the previous government of knowingly abandoning the agreements it made with the IMF.

“The previous government realised in January 2022 that the opposition had a viable and constitutional plan to remove [then-PM] Imran, so they went on to violate the terms agreed upon with the IMF,” he said.

The premier insisted that he had inherited an economy in shambles and that it was a difficult task for him to push it into recovery, particularly because his government had to honour agreements made by the previous PTI government.

An agreement with the IMF would release $1.1 billion, which analysts say is critical if Pakistan is to avoid defaulting on external debt obligations as it would also unlock inflows from friendly countries.

Cash-strapped Pakistan is in a race against time to implement measures to reach an agreement with the IMF on the completion of the ninth review of a $7bn loan program — which has been delayed since late last year over a policy framework.

Zaman Park mayhem

The prime minister also spoke on the face-off between law enforcement agencies and PTI supporters at Lahore’s Zaman Park, where a bid by Islamabad police to arrest PTI chief Imran Khan faced resistance from party supporters and workers.

The premier accused Imran of defying the courts, pointing out that leaders from the PML-N, including Rana Sanaullah and Nawaz Sharif, had appeared in courts without any objection.

He also said that no party could run away from elections and cleared the air regarding a perception that the PML-N was shying away from going into polls.

“We will go for elections according to the guidelines set by the election commission,” PM Shehbaz said.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Smog hazard
Updated 05 Nov, 2024

Smog hazard

The catastrophe unfolding in Lahore is a product of authorities’ repeated failure to recognise environmental impact of rapid urbanisation.
Monetary policy
05 Nov, 2024

Monetary policy

IN an aggressive move, the State Bank on Monday reduced its key policy rate by a hefty 250bps to 15pc. This is the...
Cultural power
05 Nov, 2024

Cultural power

AS vital modes of communication, art and culture have the power to overcome social and international barriers....
Disregarding CCI
Updated 04 Nov, 2024

Disregarding CCI

The failure to regularly convene CCI meetings means that the process of democratic decision-making is falling apart.
Defeating TB
04 Nov, 2024

Defeating TB

CONSIDERING the fact that Pakistan has the fifth highest burden of tuberculosis in the world as per the World Health...
Ceasefire charade
Updated 04 Nov, 2024

Ceasefire charade

The US talks of peace, while simultaneously arming and funding their Israeli allies, are doomed to fail, and are little more than a charade.