Pakistan Optimistic for IMF Deal as Prime Minister Shehbaz Sharif Sees Progress

Prime Minister Shehbaz Sharif highlights Pakistan's commitment to meeting IMF conditions and discusses contingency plans.

Prime Minister Shehbaz Sharif has expressed optimism about finalizing a deal with the International Monetary Fund (IMF) this month, stating that Pakistan is "very hopeful" that the IMF program will materialize. In an exclusive interview with Anadolu in Ankara, Turkey, he mentioned that Pakistan's ninth review by the IMF will fulfill all terms and conditions, potentially bringing positive news. Prime Minister Shehbaz Sharif was attending President Recep Tayyip Erdogan's inauguration along with numerous other world leaders.

Negotiations between Islamabad and the IMF for the release of $1.1 billion, part of a $6.5 billion bailout package signed in 2019 by the previous government of former Prime Minister Imran Khan, have been ongoing since early February. The release of this tranche has faced delays, with the last staff-level mission to Pakistan taking place over 100 days ago, marking the longest delay since 2008. Around $2.7 billion from the package remains to be disbursed, and the agreement is set to expire this month.

Prime Minister Shehbaz Sharif recently appealed to IMF Managing Director Kristalina Georgieva for assistance in reviving the stalled facility, although he assured that Pakistan has a backup plan in place. Finance Minister Ishaq Dar also stated that Pakistan would share its budget details with the IMF and expressed the desire for the IMF's ninth review to be cleared before presenting the budget in early June, as all conditions for it had been met.

The IMF has indicated that it remains in contact with Pakistani authorities to facilitate a board meeting before the financing program expires at the end of June. Typically, a board meeting would require a prior staff-level agreement on the review of the program.

Prime Minister Shehbaz Sharif affirmed during the interview that all conditionalities set by the IMF had been met, including some actions that are usually fulfilled after the board's approval. He emphasized the resilience and fortitude of the Pakistani nation, stating that they have faced challenges in the past and are prepared to tighten their belts and overcome difficulties if needed.

According to the Prime Minister, Pakistan has encountered various problems since April 2022, when the current government assumed power following Imran Khan's removal through a no-confidence vote. He attributed these issues to the policies of the previous government, devastating floods in August 2022, and global inflation. Despite these challenges, he claimed that his government has managed to navigate them effectively with the support of the people of Pakistan and friendly nations.