PM Shehbaz Sharif of Pakistan states that all requirements have been met and there is no remaining obstacle to reaching an agreement with the IMF

In order to restart the delayed bailout plan for the cash-strapped nation, Pakistan, which has met “all the preconditions” of the IMF, hopes to sign a staff-level agreement with the international lender. This confidence was stated by Prime Minister Shehbaz Sharif.

Sharif made his comments at a time when many think Pakistan’s prospects of extending its current USD 6.5 billion IMF programme have almost completely vanished before its expiration on June 30. The IMF has not yet given Pakistan $2.6 billion of the USD 6.5 billion tranche.

Speaking at a ceremony here on Sunday, Sharif still seemed upbeat about that arrangement with the international lender and stated, “If the agreement with the IMF is (further) delayed, then I will address you,” while alluding to the government’s plan B.

2019 saw the signing of an agreement by the International Monetary Fund (IMF) to provide Pakistan USD 6 billion in exchange for meeting a number of requirements.

Due to the donor’s desire that Pakistan finish all legalities, the plan was repeatedly delayed, and the final payment is still waiting.

Pakistan has complied with all requirements, and Sharif expressed optimism that the deal with the IMF would be inked this month.

“There is no need to worry… We have complied with all IMF requirements, eliminating any remaining barriers to concluding an agreement with it, he said, adding with a note of optimism that he had spoken with the IMF president, who had promised that the deal will be inked this month.

He said that “no hurdle is now left” to prevent Pakistan and the IMF from signing a staff-level agreement.
He said, “If the IMF agreement is delayed, I will appeal to the people of Pakistan,” without going into more detail.

Sharif said that the Pakistan Tehreek-e-Insaf (PTI) administration of former prime minister Imran Khan broke the terms of the IMF deal and that this is to blame for the present economic catastrophe.

“The PTI government had its entire focus on locking up the opposition,” he said.

He said that all development projects were put on hold by the “fascist regime of the PTI,” which took office as a result of “rigged 2018 elections.” During the PTI’s four-year tenure, “all Chinese projects were cancelled, and no development was made.”

Petrol costs were at an all-time low during the coronavirus outbreak, according to Sharif, but the PTI government at the time missed this chance. Pushing its opponents up against the wall was the PTI government’s main goal.

He said that even with a salary of Rs 50,000 per month, it was now hard to make ends meet due to the skyrocketing inflation rate. He said, “The administration is attempting to provide assistance to the salaried class despite the challenging economic circumstances.

With the exception of the 2013–16 facility, Pakistan has signed 22 IMF programmes since 1958, but has not been able to finish any of them due to roughly 18 waivers from the international lender.

Islamabad agreed to the current USD 6.5 billion Extended Fund Facility in July 2019, which was then extended by the IMF by nine months to June 30, 2023, at the request of the then-finance minister, Miftah Ismail.

The plan has stalled at least four times in the previous nearly four years, twice during the term of the present coalition government, and its failure to be completed would increase the trust gap between the nation and the financial community.

The violence on May 9 was described as an enemy strike by the prime minister at the event. Nobody has ever tried to target the army sites in the country’s 75-year existence, he said.

“Against those who assaulted the Jinnah House on the PTI chairman’s orders, the law will take its course. Nobody would dare repeat any event like the ones on May 9 because those responsible would get harsh sentences, he warned.

The Pakistan Muslim League-Nawaz (PML-N) party, led by the prime minister’s older brother Nawaz Sharif, will bring both political and economic stability, the prime minister emphasised, since the nation could not have one without the other.

“Rest assured that the time will come when Pakistan will be back on track of economic development under Nawaz Sharif, and I will continue to serve the nation till my last breath,” he said in closing.