Prime Minister Shehbaz Sharif on Sunday reiterated that Pakistan has fulfilled all the prior conditions of the International Monetary Fund (IMF) to revive a stalled bailout program, vowing that he will take the nation into confidence if the deal does not materialize before the end of the month.
Addressing the inauguration of a sports complex in Lahore, he urged the public not to panic, maintaining that the country has sufficient resources to continue functioning without hindrance. “We have met all conditions of the IMF, removing obstacles in finalizing an agreement with it. I have spoken to the head of the IMF for an hour, and she assured me that the agreement will be signed this month,” he added.
A day earlier, addressing a post-budget press conference, Finance Minister Ishaq Dar had likewise expressed optimism about reviving the IMF deal but had made veiled references to “geopolitics” to explain what he described as the “abnormal” behavior of the global lender in reviving the deal despite months of negotiations. The ninth review of the $6.5 billion loan was initially slated to be completed in November but was delayed till February. Ahead of a visit by the IMF’s team to Islamabad that month, Pakistan undertook several “harsh” measures, including withdrawing several subsidies, raising utility prices and adopting a market-determined exchange rate to no avail. Once completed, the ninth review would unlock a $1.1 billion tranche, as well as providing other avenues of financial support for Pakistan.
During his speech on Sunday, the prime minister lamented that the ousted Pakistan Tehreek-e-Insaf (PTI) government had reneged on its agreement with the IMF, widening a trust deficit between the state and the global lender. Singling out Imran Khan, he alleged that the PTI chief’s government had halted work on several development projects and failed to benefit from global circumstances, such as the massive decline in gas prices during the COVID-19 pandemic.
Accusing Khan of delaying projects under the head of the China-Pakistan Economic Corridor, he alleged the PTI’s sole agenda while in power was to push the opposition to the wall. Had Khan worked to resolve “real issues,” he claimed, the economic conditions would not be so dire today. Emphasizing that economic stability could not occur without political stability, he pointed to the May 9 riots triggered by the arrest of the PTI chief as “acts of enmity that even the enemies could not accomplish” in Pakistan’s 75 years. “The miscreants attacked government facilities, causing substantial damage in a single day at the instigation of an individual,” he said, referring to Khan. “Anyone found guilty in these incidents would be penalized,” he vowed.
Referring to the sports complex, he said this was the first of 14 in Lahore aimed at benefiting the youth free of charge. He said there would be no membership fees for school and college students, and there would be separate facilities for boys and girls.