Prime Minister Shehbaz Sharif said on Tuesday his government was working on implementing conditions from the International Monetary Fund (IMF) to complete its loan programme, which he hoped would be the country’s last.
Speaking at a federal cabinet meeting today, the premier said, “The programme we have with the IMF — the conditions that they have — it is under supervision and we are fully taking steps for it.”
“The conditionalities will be fulfilled and our case will be brought forward to the (Executive) Board for approval and, god willing, there will be a new journey,” the premier said, before emphasising that he hoped this would be the last programme the country has to take.
“We are working day and night with commitment, it is a difficult journey but not an impossible one,” he said.
According to state-owned PTV, the prime minister also commented on inflation reaching single digits in August.
“The burden of inflation is gradually reducing. The inflation rate has reached single digits in August. In August last year, the inflation rate was around 27 per cent,” he said before commending the Ministry of Finance and the State Bank of Pakistan.
Pakistan’s consumer price index (CPI) in August rose 9.6pc year-on-year (YoY), marking a 34 month-low, data from the Pakistan Bureau of Statistics (PBS) showed.
“The journey is long, we have to move forward quickly. We have to bring stability and growth in the economy,” he stated.
Pakistan in July struck an agreement with the IMF for a $7 billion, 37-month loan programme.
Previously, the premier had emphasised on the “long and difficult journey” Pakistan needed to embark on to prevent knocking on the doors of the Fund again.
The programme, which needs to be approved by the IMF’s Executive Board, should enable Pakistan to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth,” the IMF had said in a statement.
Coming to Pakistan in the form of loans, the bailout follows a commitment by the government to implement reforms, including a major effort to broaden the country’s tax base.
