ISLAMABAD: Prime Minister Shehbaz Sharif on Friday praised Saudi Arabia, the United Arab Emirates and China for playing a crucial role in helping Pakistan with the $7 billion International Monetary Fund (IMF) loan, which is expected to be finalized when the global lending agency’s executive board meets on September 25.
Pakistan reached a staff-level agreement with the IMF for a fresh loan program in July to keep its fragile economy afloat, with Finance Minister Muhammad Aurangzeb expressing hopes of sealing the deal by the end of August.
However, the delay was caused by an external financing gap, prompting Pakistan to seek commitments from key allies and request debt reprofiling.
The prime minister, speaking to a group of young parliamentarians from the ruling Pakistan Muslim League-Nawaz (PML-N) party in Islamabad, shared background details of the efforts to secure the loan.
“Once again, Saudi Arabia, which is our very dear brotherly country, China, which is Pakistan’s trusted partner, and the UAE, which is also a brotherly state [assisted Pakistan],” he said. “If these three countries had not contributed and played their role in this IMF program, it would not have been possible to secure it.”
Sharif also highlighted improvements in the country’s macroeconomic indicators, noting that inflation had decreased and remittances from overseas Pakistanis were on the rise.
He acknowledged the need to expand the tax net, recognizing the financial burden on the salaried classes, but expressed optimism that the situation would stabilize as Pakistan made economic progress.
The prime minister further emphasized that Pakistan needed to break its reliance on borrowing, expressing hope that this would be the last IMF program the country would ever need.