ISLAMABAD: Pakistan’s Prime Minister Shehbaz Sharif has said that Pakistan would fulfill its commitments made to the International Monetary Fund (IMF) to secure a short-term financing deal, helping the cash-strapped nation to avert a default shortly.
The Prime Minister said this during a ceremony to mark a decade since the China-Pakistan Economic Corridor (CPEC) signing in Islamabad on Wednesday, adding that the agreement would go through, God willing.
A staff-level agreement on the $3 billion stand-by agreement (SBA) was reached between the local authorities and the IMF team on 30th June, whereas the executive board of the monetary body would give final approval on July 12.
Meanwhile, the country faced several financial challenges, including balance-of-payments to service crippling external debt, unending political chaos, devaluation of local currency, alarming Inflation, etc. The country also struggles to afford imports, causing a severe decline in industrial output.
Pakistan’s Rich Class Needs to Play Role
Over the recent development, the prime minister further said that Pakistan had averted the threat of default, adding that the IMF deal has allowed the country to bounce back towards development.
“We need to work hard and save the poor people from inflation. The elite (or those with money) should play a role in this regard,” he said.
The prime minister thanked President Xi and the Chinese government for supporting Pakistan, particularly when it awaited the staff-level agreement with the IMF.
He also hailed Saudi Arabia, the United Arab Emirates, and Islamic Development Fund for supporting Pakistan in helping to overcome its financial crisis.
Meanwhile, Finance Minister Ishaq Dar has said that Pakistan is all set to receive a first instalment of $1.1 billion, which would come only after the board’s approval.
