PM discusses new loan programme with IMF chief

RIYADH: On the sidelines of the World Economic Forum (WEF) special meeting here, Prime Minister Shehbaz Sharif met the International Monetary Fund (IMF) Managing Director (MD) Ms. Kristalina Georgieva on Sunday.

The PM informed the IMF MD his government was fully committed to putting Pakistan’s economy back on track, while the latter shared her institution’s perspective on the ongoing programme with the former, including the review process.

Shehbaz thanked Ms Georgieva for her support to Pakistan in securing the US$3 billion Standby Arrangement (SBA) from the IMF last year, which was now nearing its completion. The IMF executive board is expected to meet on Monday (today) to decide on the final tranche of US$1.1 billion under the SBA.

The IMF MD appreciated the leadership of PM Shehbaz Sharif for timely securing the SBA last year. Shehbaz Sharif told the Fund MD that he had directed his financial team, led by Finance Minister Muhammad Aurangzeb, to carry out structural reforms to ensure strict fiscal discipline and pursue prudent policies that would ensure macroeconomic stability and sustained economic growth. Both sides also discussed Pakistan entering into another IMF programme to ensure that the gains made in the past year were consolidated and its economic growth trajectory remained positive. The PM also extended a cordial invitation to the IMF MD to visit Pakistan at her convenience.

Separately, PM Shehbaz Sharif Sunday held separate meetings with Saudi Arabia’s Minister for Investment Khalid Al-Falih, Minister for Finance Mohammad Al Jadaan and Minister for Industry Bandar bin Ibrahim Alkhourayef and discussed matters of mutual interest.

During the meetings, the Saudi minister for investment declared the prime minister the ‘Prime Minister of Action’ and said “we all are aware of your performance and speed of work”. He said the prime minister was taking forward the mission of progress of Pakistan and they all were with him. “Your mission is our mission,” he remarked.

The Saudi minister for finance said a delegation of Saudi investors would soon visit Pakistan. Pakistan was priority for their investment and Saudi Arabia would continue to fully cooperate in the fields of agriculture, information technology and energy. He said Pakistanis, in the past, played a prominent role in the progress of Saudi Arabia in different fields.

During the meeting between the prime minister and Saudi finance minister, it was agreed that Saudi Arabia would further explore opportunities of investment in Pakistan.

The Saudi finance minister reaffirmed the support of Saudi Arabia in the economic progress of Pakistan, saying “progress of Pakistan is progress of Saudi Arabia”. He said Saudi Arabia took difficult decisions for reforms at the government level related to its Vision 2030.

The prime minister also met the Saudi minister for industry, who expressed keen interest for collaboration with Pakistan in the fields of agriculture, mining, information technology and other areas and informed about the progress made in this regard. He said he was in contact with the Saudi private companies regarding investment in Pakistan and representatives of these companies would soon visit Pakistan.

Collaboration between the private companies of the two countries was a priority for his government, he added. During these meetings, federal cabinet members were also present.

Earlier in the day, PM Shehbaz addressed a session of the World Economic Forum (WEF) on global health. He termed the global inequity in the health sector ‘the first and foremost problem’ and called upon bridging the widening gap between the Global South and the Global North.

He said the Covid-19 pandemic had exposed the existing gaps largely between the Global North and Global South in terms of health facilities and distribution of vaccines.

He told the gathering that despite no contribution to the emissions, Pakistan witnessed the worst climate change-triggered floods in 2022, which hugely devastated the infrastructure and buildings and had to spend billions of rupees to rehabilitate the affected people.

PM Shehbaz said for rehabilitation efforts, they sought costly loans. “Can a developing country like Pakistan afford it?” he questioned and observed that for health facilities, a developing country like Pakistan required resources. “The yawning gap between the Global South and Global North should be bridged,” he emphasized.

Sharing his personal experiences, the prime minister said treatment for fatal diseases like cancer was too costly for the poor population of Pakistan. He said as chief minister of Punjab, he had provided about 130 million dwellers of the province with the best medical treatment initiatives like screening and treatment facilities for Hepatitis in the remotest and backward areas of the province where the poor people had been in dire need of basic facilities like education and health.

The PM said while being Punjab’s chief minister, he had established the first kidney and liver hospital in Punjab which was probably one of the best in Asia, providing free treatment to the poor.

About the dengue outbreak in 2011 in the province, he shared that the phenomenon in the health sector was one of the biggest in the world but it was controlled through engaging international experts, equipment and activating government machinery, civil society and common man.

The prime minister, in his remarks, appreciated Bill and Melinda Gates Foundation for its support and provision of vaccines for polio eradication drives in Pakistan besides aid during the 2022 floods to support the affected people of Pakistan.

Meanwhile, the prime minister, in a meeting with the Amir of Kuwait Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah expressed his desire to work closely with him to transform the bilateral ties into a mutually beneficial economic partnership that would serve the best interests of the peoples of both countries.

Also, PM Shehbaz Sharif and President of Islamic Development Bank (IDB) Dr Muhammad Sulaiman Al Jasser Sunday agreed for early completion of different IDB development projects in Pakistan. The prime minister thanked the IDB for its $1 billion investment on different uplift projects in Pakistan during his previous tenure in office.

The president of IDB called on the prime minister on the sidelines of the special meeting of WEF, the PM Office Media Wing said in a press release. The PM said that for fast tracking foreign investment, removing all concerns of foreign investors and provision of one window operation, Special Investment Facilitation Council (SIFC) was fully functional. The IDB president said that Pakistan was a founding and the most important member of the Bank. In the evening, PM Shehbaz Sharif attended the ‘Special Dialogue and Gala Dinner’ hosted by Saudi Crown Prince Mohammed bin Salman (MBS). He exchanged views with the host and congratulated the Saudi leadership on the successful organisation of the WEF special meeting. He also thanked the crown prince for sending a high-powered delegation to Pakistan, led by Foreign Minister Prince Faisal bin Farhan bin Abdullah. In addition to bilateral ties, the regional situation, particularly with regard to the crisis in Gaza, was also discussed. The PM reiterated his invitation to Crown Prince Mohammed bin Salman to undertake an official visit to Pakistan at his earliest convenience.