By Rao Muhammad Tahir…
ISLAMABAD: IMF Agreement Vital for Economic Reforms: Prime Minister Shahbaz Sharif’s relentless efforts and consistent communication have brought significant progress between Pakistan and the International Monetary Fund (IMF) at the staff level in the current economic conditions. The IMF staff team, under the leadership of Nathan Porter, held personal and virtual meetings with Pakistani officials. At the conclusion of the mission, Nathan Porter stated in the issued statement that the IMF team has reached an agreement with Pakistani authorities at the staff level on a Stand-By Arrangement (SBA) worth $2.25 billion (approximately $3 billion or 111% of the IMF quota) for a period of nine months.
It has been stated by the IMF that a robust policy framework is crucial to address Pakistan’s existing challenges, including enhanced fiscal discipline, managing external pressures through a market-determined exchange rate, and further progress on reforms, particularly in the energy sector, to promote resilience and improvement. It is evident that despite the political foundations, Pakistan was unable to secure a loan from the IMF during the previous nine months, yet it did not default but managed to make timely external payments.
Finance Minister Ishaq Dar has stated that all promises will be fulfilled, and the damage that has occurred needs to be recorded. In the past 10 days, IMF was prepared. We did not want the IMF program to exceed nine months. The Prime Minister took a keen interest in the IMF agreement and was hesitant to impose a tax burden of Rs. 215 billion on the nation. The Finance Minister said that even if the IMF agreement did not exist, there was Plan B. We did not want to default even under Plan B. Fiscal discipline, like democracy, is also essential.
EPCCI President, Ehsan Iqbal Sheikh, hailed the IMF agreement as a significant gift for the economic welfare of the country. He stated that the IMF agreement will determine the correct direction of the national economy. Lahore Chamber of Commerce President, Kashif Anwar, said that the agreement would end the speculation of possible defaults. Businessmen Group Chairman, Zubair Motiwala, stated that the rupee would strengthen, leading to reduced inflation. Overall, the IMF agreement is a positive step forward.
Mian Shahbaz Sharif is well aware of the economic challenges facing the country under the current government. Pakistan’s citizens are suffering from skyrocketing inflation, life-threatening unemployment, severe electricity and gas crises, and alarming uncertainties. To rescue Pakistan from the current economic crisis, the revival of the IMF program was the only viable option. The burden of debts and repayments has become unbearable for Pakistan.
With the revival of the IMF program, the common man’s difficulties will increase. Inflation is already at its highest level in the country’s history. The prices of electricity and gas will increase, and essential commodities will become more expensive. The nation’s economic situation, foreign reserves, and alarming inflation have shaken the entire system. However, those responsible for ruining the economy have yet to be held accountable. Nevertheless, to learn to live without the IMF, effective measures must also be taken.
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