IMF to give $2bn soon: PM

ISLAMABAD: Prime Minister Shehbaz Sharif said Tuesday that the IMF would soon give two billion dollars to Pakistan. He promised to take the country towards economic stability in the next 14 months and added his government would ultimately move forward to self-reliance.

Addressing the inaugural session of a 'Turn Around Pakistan Conference' hosted by the Ministry of Planning and Development, the prime minister said that to move towards economic stability, the country needed political stability. "We will have to rise above personal interests and take such long-term decisions to change the destiny of the country."

Speaking after the development that Pakistan could get $2 billion instead of one billion dollars from the IMF, Shehbaz Sharif said that ultimately the goal would be to achieve self-reliance to take economic and political decisions independently. “Miftah Ismail sent me a message this morning that Pakistan might be getting $2 billion, not one billion dollars, from the IMF and I responded Alhamdolillah but I told him that our ultimate goal is self-reliance,” the PM said.

He said the country was facing difficult challenges but it was the government’s utmost effort to collectively steer the country out of them, expressing satisfaction that majority of the affluent had accepted the super tax which would help generate Rs230 billion.

The PM pointed out that the goal of self-reliance was easier said than done but “we will certainly overcome the challenges which we are facing since taking over the government.” Noting that the coalition government has many plus points, he said it should also be acknowledged that consultations between the provinces on certain issues were also challenging. The prime minister also referred to the model of Bangladesh which had recently spent six billion dollars on infrastructure without support from the IMF or World Bank and said it was a big achievement. At the same time, he said that there was no shortage of resources and expertise in Pakistan. He cited the example of Reko Diq, saying Pakistan had wasted billions but had yet to earn anything from the project.

Shehbaz said that Pakistan was drowning under debts, saying the country's liabilities far outweighed its assets. He said the nation would have to bear the brunt, holding out an assurance that revenue from sales tax would not be wasted and it would be used on economic development. He said that a policy will be framed very soon, which would cover these development schemes.

Shehbaz Sharif, however, regretted a delay in completion of various projects as well as the failure of the previous government to sign on-spot or long-term agreement for purchase of LNG. “We are now importing coal from Afghanistan to address the issue of power outages,” he said. He said since this transaction will be in Pakistani rupees, this will help the country save two billion dollars every year and added the coal was of good quality suitable for power projects installed under the CPEC.

He asked the participants in the conference to give suggestions for uplifting agriculture and agro-based industries and bolstering exports. He said his government wanted to cut through the red tape and end the culture of NOCs within a month.

Speaking on the occasion, Finance Minister Miftah Ismail said Pakistan no longer faces the default threat, saying that they aim to reduce the primary deficit from Rs1,600 billion to Rs125 billion surplus during the current fiscal year. He said when he had sent a message to the prime minister about the IMF development, he responded by saying well done but added “remember the ultimate goal is self-reliance.”

“That will be our legacy,” he quoted the prime minister as saying. The finance minister expressed his belief that if the country focuses on economic growth only in the next 10 years, the goal of self-reliance is not impossible. He said the country could not afford a consecutive fifth deficit budget, adding that Pakistan had borrowed a record Rs20,000 billion in the last less than four years. He said that Pakistan would have to deal with Rs4,000 billion in debt servicing because of increase in interest and doubling of the debt. “We will have to take tough decisions to move on the road to progress,” he said.

Miftah Ismail stressed that every Pakistani should become a taxpayer to put the country's economy on the right track. He categorically said that his government has taken difficult decisions and will not hesitate to take more in future to strengthen the economy.

Earlier, Mifath took to Twitter and shared that Pakistan has received the MEFP from the IMF for the seventh and eighth reviews. In his speech, Minister for Planning and Development Ahsan Iqbal said Pakistan could achieve self-reliance by pursuing the path of bringing about structural reforms and bolstering exports by promoting the industrial and agriculture sectors. Emphasising on the need for equal development, Ahsan Iqbal said Prime Minister Shehbaz Sharif seeks a programme to uplift 20 poorest districts on a fast track basis to reduce the gap of development. He said they will have to bring the country out of polarisation and anarchy besides unleashing the potential of our entrepreneurs to put the country in the right direction.

Islamabad Chamber of Commerce and Industries President Shakil Munir assured the government of support in the difficult situation being faced by the country. He suggested that a special industrial zone be established for businessmen of the capital. He said businessmen will set up industries with their own resources provided the government gives them land under Section-IV.

Meanwhile, Prime Minister Shehbaz Sharif expressed grief over the killing of three security personnel deputed with a polio vaccination team in Tank. On Twitter, the prime minister asked the interior minister to submit a report on the incident before the next cabinet meeting. He also prayed for peace of the departed souls and strength to bereaved families to bear the loss.

Meanwhile, a delegation of the Awami National Party (ANP) led by Aimal Wali Khan also called on the prime minister. During the meeting, views were exchanged about the country’s political situation.