ISLAMABAD: In a bid to end the economic uncertainty stemming from the delay in the 9th review of the International Monetary Fund (IMF) programme, Prime Minister Shehbaz Sharif chaired a huddle of his economic team to take stock of the economic situation and devise ways to ward off the risk of default and keep the Fund happy.
The meeting was convened at a time when the current and former finance ministers of the coalition government were busy giving contradictory statements on default risks faced by the country amid a delay in the talks with the IMF.
In a high-level meeting at the Prime Minister’s House, the economic team briefed Mr Sharif on the current status of the economy, whispers of default risk, and prior conditions for the next review. The premier said the government would continue its programme with the Fund at all costs. Similarly, the premier stressed the need for structural and policy reforms in order to reduce fiscal and current account deficits.
Shehbaz calls for structural, policy reforms to reduce current account, fiscal deficits
In the meeting, the premier directed that facilities should be provided to the exporters, including necessary facilities at ports, identification of new markets, and assistance in the import of raw materials and machinery. Mr Sharif said at present, Pakistan’s IT exports stood at $2 billion and added that these could be increased to $5 billion through the provision of facilities to entrepreneurs in the field.
The minister of energy was directed that the reforms in the energy sector should be implemented with full attention and diligence. Reducing circular debt is a top priority along with increasing power generation, the premier stressed. The prime minister directed that a campaign should also be started to improve general attitudes towards energy saving, as Pakistan relied on imported fuel to produce power.
According to the statement issued after the meeting, in 2018, Pakistan owed Rs25 trillion in loans. However, in March 2022, the total loans taken by the country were recorded at Rs44.5 trillion, it said, blaming the previous government for ruining the economy.
Finance Minister Ishaq Dar, Planning Minister Ahsan Iqbal, the governor of the State Bank of Pakistan, and other top officials of the finance, economic affairs, and planning ministries attended the meeting. Presidents of Habib Bank Limited and the Al-Falah Bank also attended the briefing.
Published in Dawn, December 15th, 2022