During a recent ceremony in Lahore, Prime Minister Shehbaz Sharif expressed his frustration with the current economic situation, stating that the authorities have to meet the "tough" conditions of the International Monetary Fund (IMF) as there is no other option.
He emphasized that Pakistan has now met all the conditions laid forth by the IMF and that the lender has “no excuse” to delay the staff-level agreement. Despite this, hard efforts are still being made to restart the IMF program and secure a much-awaited bailout tranche from the Washington-based lender. It should be noted that Pakistan signed a $6.5 billion bailout package with the IMF in 2019, but has repeatedly reneged on conditions and so far just $3 billion has been released.
In a positive turn of events, the United Arab Emirates (UAE) has confirmed financial support of $1 billion to Pakistan, making it the third country, after Saudi Arabia and longtime ally China, to come to the cash-strapped nation's assistance. This commitment was one of the IMF's last requirements before approving a staff-level pact to release a tranche of $1.1 billion, which has been delayed for months and is crucial for Pakistan to resolve an acute balance of payments crisis.
PM Shehbaz praised the efforts of his foreign and finance ministers for working hard to complete the last condition regarding securing financial guarantees from "key" friendly countries. He also thanked the Chief of Army Staff General Asim Munir for his contributions to these efforts, after which Saudi Arabia and the UAE committed funds. The prime minister expressed his gratitude to these countries for showing what brotherhood actually means.
He further emphasized that Pakistan was not created to act like a beggar and depend on foreign debts, but rather to stand on its feet by carving a niche among the comity of nations with honesty, dedication, and hard work. If the chronic issues relating to load shedding, the scourge of terrorism could end, free medicines could be provided to the poor, and road infrastructure could be laid, then surely, the country could move on the path of progress and prosperity.