Pakistan to ‘tighten our belt,’ rise again if IMF deal fails — PM

The seal for the International Monetary Fund is seen in Washington, DC, on January 26, 2022. (AFP/File)
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Updated 05 June 2023
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Pakistan to ‘tighten our belt,’ rise again if IMF deal fails — PM

  • Hopes for resumption of IMF deal fading with bailout program agreed in 2019 due to expire on June 30
  • IMF funding is crucial for the South Asian country, which faces an acute balance of payments crisis

ISLAMABAD: Prime Minister Shehbaz Sharif has said Pakistan was “very hopeful” of finalizing a deal with the International Monetary Fund (IMF) this month but the nation would “tighten our belt” and move on if the deal fell through.

The PM’s comments come as hopes for a resumption of an IMF deal are diminishing, with a bailout program agreed in 2019 due to expire on June 30 at the end of the 2022-23 fiscal year.

The IMF funding is crucial for the $350 billion South Asian country, which faces an acute balance of payments crisis. This has raised concerns of a sovereign default, something which the minister dismissed.

The central bank's foreign reserves have fallen as low as to cover barely a month of controlled imports. Pakistan's economy has slowed, with an estimated 0.29% GDP growth for 2022-2023.

“We are still very hopeful that the IMF program will materialize. Our ninth review by the IMF will match all terms and conditions and, hopefully, we’ll have some good news this month,” Sharif said in an interview to international media published on Monday, after a visit by the PM to the Turkish capital Ankara for President Recep Tayyip Erdogan’s inauguration.

“We have met all conditionalities. I repeat, each and every requirement of the IMF as prior actions has been met,” Sharif said. “Some of those actions are usually met after the board’s approval, but this time the IMF required that those actions be met before the board’s approval, so we have met them.”

On contingency plans in case the IMF talks fall through, Sharif said Pakistan had faced challenges in the past, and if needed, will “tighten our belt” and rise again.

The IMF's $1.1 billion funding to Pakistan, which is part of the $6.5 billion Extended Fund Facility agreed in 2019, has been held up since November.

Islamabad hosted the IMF mission in February to negotiate a series of fiscal policy measures to clear the 9th review. 

Pakistan had to complete a series of prior actions demanded by the IMF, which included reversing subsidies, a hike in energy and fuel prices, jacking up its key policy rate, a market-based exchange rate, arranging for external financing and raising over 170 billion rupees ($613 million) in new taxation.

The fiscal adjustments have already fueled Pakistan's highest ever inflation, which rose to 37.97% in May.


Peace can only prevail if Afghanistan renounces support for ‘terrorism’— Pakistan defense chief

Updated 04 March 2026
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Peace can only prevail if Afghanistan renounces support for ‘terrorism’— Pakistan defense chief

  • Pakistan’s chief of defense forces visits South Waziristan district bordering Afghanistan
  • Pakistan says has killed 481 Afghan Taliban operatives since clashes began last Thursday

ISLAMABAD: Pakistan’s Chief of Defense Forces Field Marshal Syed Asim Munir said on Wednesday that peace with Afghanistan can only prevail if Kabul renounces support for “terrorism” and “terrorist” organizations, the military’s media wing said as the two countries remain locked in conflict. 

Fighting between the two neighbors, the worst in decades, broke out last Thursday night after Afghan forces attacked Pakistan’s military installations along their shared border. Afghanistan said its attacks were in response to earlier airstrikes by Pakistan against alleged militant hideouts in its country. 

Pakistan accuses Afghanistan of sheltering militant outfits such as the Tehreek-e-Taliban Pakistan (TTP) on its soil who have launched attacks against Pakistani civilians and security forces in recent years. Kabul denies the allegations. 

Munir visited Wana town in Pakistan’s South Waziristan district to review the security situation and troops’ operational preparedness at the Afghan border, the Pakistani military’s media wing said in a statement. 

“The Field Marshal reiterated that peace could only prevail between both sides if the Afghan Taliban renounced their support for terrorism and terrorist organizations,” the Inter-Services Public Relations (ISPR) said. 

The military chief said the use of Afghan soil by militant outfits to launch attacks against Pakistan was unacceptable, vowing that “all necessary measures” would be taken to neutralize cross-border threats. 

During the visit, Munir was briefed by military commanders about ongoing intelligence-based operations and measures being taken by the military to manage the border with Afghanistan.

He was also briefed about “Operation Ghazab Lil Haq” or “Wrath for the Truth,” the name Pakistan has given to its military operation against Afghan forces, the ISPR said. 

The Pakistani military chief spoke to troops deployed in the area, praising their vigilance, professional conduct and high morale, the ISPR said. 

Pakistan’s Information Minister Attaullah Tarar said on Wednesday that the military has killed 481 Taliban operatives, injured more than 690 and destroyed 226 Afghan checkposts since clashes began. 

Arab News has been unable to verify claims by both sides about the damages they claim to have inflicted on each other.

Afghanistan has signaled it is open for dialogue but Pakistan rejected the offer, saying it would continue its military operations till its objectives were achieved. 

Since the conflict began, diplomatic efforts have intensified with several countries, including global bodies such as the European Union and United Nations, urging restraint and calling for talks.

Turkish President Recep Tayyip Erdogan told Pakistani Prime Minister Shehbaz Sharif that ⁠Ankara would help ⁠reinstate a ceasefire, the Turkish Presidency said on Tuesday, as other countries that had offered to mediate have since been hit by the conflict in the Gulf.