Riyadh, April 28, 2024 — In a significant step toward securing financial stability for Pakistan, Prime Minister Shehbaz Sharif met with International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Sunday to discuss a new loan program.
The meeting, held on the sidelines of the World Economic Forum Special Meeting in Riyadh, focused on the possibility of Pakistan entering another IMF program.
According to a press release from the Prime Minister’s Office, the discussions aimed to consolidate the economic gains achieved in the last year and ensure a positive trajectory for Pakistan’s economic growth. This meeting marks the first between Prime Minister Shehbaz and IMF MD Georgieva since the former’s re-election, with their last interaction taking place in Paris in June 2023.
During the meeting, Prime Minister Shehbaz reiterated his administration’s commitment to placing Pakistan’s economy on a sustainable path. He emphasized the ongoing efforts led by Finance Minister Muhammad Aurangzeb, which include implementing structural reforms, maintaining strict fiscal discipline, and adopting prudent economic policies. These measures are intended to foster macroeconomic stability and drive sustained growth, addressing the long-standing economic challenges faced by the nation.
The Prime Minister expressed his gratitude to Georgieva and the IMF for their support in securing a USD 3 billion Standby Arrangement (SBA) last year, a program nearing its completion. The final tranche of USD 1.1 billion under this arrangement is pending approval, with the IMF Executive Board scheduled to convene on April 29 to make a decision.
In response, IMF MD Georgieva commended Prime Minister Shehbaz for his leadership in timely securing the SBA. She provided insights into the IMF’s perspective on the ongoing cooperation with Pakistan, including the review processes associated with the program. The IMF leader’s feedback underscores the critical nature of the discussions and the potential for future financial collaboration.
The discussions also touched upon the broader implications of the new loan program. With Pakistan grappling with various economic pressures, including inflation and external debt, the support from international financial institutions like the IMF is crucial. Such partnerships are vital for implementing reforms that can lead to substantial improvements in economic governance and public financial management.
Prime Minister Shehbaz took the opportunity to extend an invitation to Georgieva to visit Pakistan at her convenience, a gesture that reinforces the importance of continued close ties between Pakistan and the IMF.
This meeting comes at a pivotal time when Pakistan is making concerted efforts to navigate through economic difficulties and lay the groundwork for a stable and prosperous future. The potential new IMF program could play a significant role in achieving these goals, providing not just financial support but also facilitating valuable guidance on economic policy and reform.
As the international and local stakeholders await the outcomes of these discussions, the commitment shown by both Pakistani leadership and the IMF could signal new beginnings and a hopeful outlook for Pakistan’s economic stability and growth. The decisions made in the coming days will undoubtedly have lasting impacts on the country’s economic landscape.
