Pakistan Needs Another IMF Loan For Stability, Says PM Shehbaz Sharif

Prime Minister Shehbaz Sharif said on Tuesday that Pakistan needs another loan programme from the International Monetary Fund (IMF) to stabilise its fragile economy, ARY News reported.

PM Sharif said this while addressing a ceremony to encourage taxpayers in the country in Islamabad.

The prime minister said the government is compelled to enter into a new IMF deal for the purpose of stability, ARY News reported.

However, he said that along with the IMF program, the government will focus on fostering growth, creating job opportunities, and addressing the issue of inflation.

Shehbaz Sharif said the federal government in collaboration with the provincial governments will create enabling circumstances for the private sector and address their problems. He said that refunds to the tune of sixty-five billion rupees have been made to the exporters, expressing the determination that in future the refunds will be made in a timely manner. He said we will also go towards providing electricity to the industries on competitive rates in order to enhance their productivity.

He said the platform of Special Investment Facilitation Council (SIFC) has been established to give impetus to the investment. He said the second phase of CPEC will be taken forward.

As regards tax reforms, the Prime Minister said the FBR will be totally restructured. He said consultants will be hired next month for complete digitalization of the tax collection body. Referring to low tax to GDP ratio, he said we will have to enhance the tax base.

The Prime Minister stated that the leading taxpayers and exporters are the heroes of this country. He announced that the recipients of today's awards, consisting of exporters and taxpayers, will be issued blue passports, ARY News reported.

The comments came after the IMF agreed to a staff-level agreement with Islamabad which, if approved by its board, would disburse the last tranche of USD 1.1 billion under an existing USD 3 billion standby arrangement.

Notably, the IMF mission that visited Islamabad for five days on the last review of the stand-by programme said Pakistani authorities expressed interest in yet another bailout.

The stand-by arrangement expires on April 11.

Ahead of the stand-by arrangement, Pakistan had to meet IMF conditions including revising its budget, and raising interest rates, as well as generating revenue through more taxes and hiking electricity and gas prices, ARY News reported.

The International Monetary Fund confirmed that Pakistan was seeking a 24th medium-term bailout package for a permanent push towards longstanding structural reforms, reported Dawn.

The IMF confirmed this while announcing the staff-level agreement on the successful completion of the existing short-term facility.

The IMF, in its end-of-mission statement, said that subject to the approval of its executive board, the staff-level agreement would enable Pakistan to access about USD 1.1 billion--828 million special drawing rights (SDR) - by late April.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)