ISLAMABAD: Prime Minister Shehbaz Sharif said on Wednesday Pakistan had met the “tough conditions” set by the International Monetary Fund (IMF) with the help of Saudi Arabia, the United Arab Emirates and China, as the global lending agency’s board meets today to discuss the $7 billion loan program for the country.
Pakistan reached a staff-level agreement with the IMF in July for a fresh loan to keep its fragile economy afloat. Finance Minister Muhammad Aurangzeb had earlier expressed hope of sealing the deal by the end of August. However, delays were caused by an external financing gap, which prompted Pakistan to seek commitments from key allies and request debt reprofiling.
Just a day earlier, the finance minister again expressed optimism about securing the loan program after the IMF board meeting, while emphasizing the government’s commitment to structural reforms.
“[Today] is the IMF board meeting, and we have fulfilled all of their conditions, very tough conditions, but praise be to God, we have completed them,” he told the media in New York on the sidelines of the 79th United Nations General Assembly Session. “I want to express my heartfelt gratitude once again, to our trusted brother nations, Saudi Arabia, China and the UAE. Without their immense support, this would not have been possible.”
“At the final stage, the conditions were related to China, and just like in the past, the Chinese government once again held Pakistan’s hand and offered immense support,” he added. “I am deeply grateful to the Chinese leadership.”
Pakistan’s last $3 billion IMF program helped avert a sovereign default in 2023 amid a sharp decline in foreign exchange reserves, currency depreciation and record inflation.
The government has already maintained that the country’s macroeconomic indicators have improved, though it needs the 37-month-long IMF program to solidify those gains.
“You have to grow and build from a stable base,” Pakistan’s finance minister said on Tuesday while addressing a high-level private sector dialogue, ‘CPEC-II and the Region.’ “We have reached that level now. Now, we can say that we have a good foundation on which we can build from here.”
“Now we need to move forward and stay with the reform agenda whether it’s on the taxation or energy side [or] on the state-owned enterprises or privatization side,” he added.
Bailout: Pakistan thanks Saudi Arabia, UAE, China for support ahead of IMF meeting today
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Bailout: Pakistan thanks Saudi Arabia, UAE, China for support ahead of IMF meeting today
- IMF executive board scheduled to meet today to discuss approval of $7 billion loan for Pakistan
- External financing gaps prompted Pakistan to seek commitments, debt reprofiling from key allies
High-level Libyan delegation meets Pakistan PM, discusses areas for future cooperation
- The meeting comes over a month after Pakistan reportedly struck a $4 billion defense deal to sell military equipment to Libyan National Army
- PM Sharif reaffirms Pakistan’s commitment to fostering friendly ties with Libya, emphasizes the importance of continued engagement and dialogue
ISLAMABAD: A high-level delegation from Libya on Tuesday called on Pakistan Prime Minister Shehbaz Sharif in Islamabad and discussed areas for future cooperation between the two sides, PM Sharif’s office said.
The delegation comprised Dr. Osama Saad Hamad, who governs eastern Libya, Libyan National Army (LNA) Commander-in-Chief Khalifa Abu-al-Qasim Haftar and his deputy, Lt. Gen. Saddam Khalifa Haftar.
During the discussions, both sides exchanged views on matters of mutual interest and underscored the importance of strengthening bilateral relations, according to PM Sharif’s office.
“The meeting reflected the shared desire to enhance cooperation in areas of common concern and to promote peace, stability, and development at regional and international levels,” Sharif’s office said in a statement.
The development comes more than a month after reports suggested Pakistan had struck a $4 billion defense deal to sell military equipment, including JF-17 fighter jets and Super Mushshak trainer aircraft, to the LNA that controls eastern Libya.
The reports followed the visit of Pakistani Defense Forces Chief Field Marshal Asim Munir to Libya in December. There has been no official confirmation of the deal so far.
Libya has been subject to a UN arms embargo since 2011, requiring approval from the UN for transfers of weapons and related material. It was not clear whether Pakistan or Libya had applied for any exemptions to the UN embargo.
PM Sharif reaffirmed Pakistan’s commitment to fostering friendly relations with Libya and emphasized the importance of continued engagement and dialogue, according to his office. The Libyan leadership appreciated Pakistan’s role and expressed interest in expanding collaboration between the two countries.
“The meeting concluded with an understanding to maintain close contact and explore avenues for future cooperation,” Sharif’s office said.
On Monday, LNA Commander-in-Chief Haftar also met Field Marshal Munir and discussed with him military cooperation and regional security, according to the Pakistani military.
“Both sides exchanged views on matters of mutual interest, with particular focus on security dynamics in respective regions and professional cooperation,” the Pakistani military said.
“The discussion underscored the importance of continued engagement and collaboration between the Armed Forces of Pakistan and Libya.”
