ISLAMABAD: Prime Minister Shehbaz Sharif welcomed the International Monetary Fund’s (IMF) decision to approve a $7 billion loan program for the country, his office said on Wednesday.
The IMF has approved the bailout package for Pakistan after the South Asian nation agreed to strengthen fiscal and monetary policy and implement reforms to broaden the tax base, secure a level playing field for investment and enhance human capital.
In July, the Fund reached a staff-level agreement on economic policies with Pakistan for 37-month Extended Fund Facility (EFF) of about $7 billion. The IMF executive board has now approved the 25th loan program that Pakistan has obtained since 1958.
“We will continue to struggle to achieve economic progress targets,” the prime minister said while expressing satisfaction over approval of the IMF loan package.
“If this hard work continues, this will be Pakistan’s last IMF program,” he continued while thanking the friendly countries including Saudi Arabia, China and the United Arab Emirates for their support to get the program.
Economists have termed the loan approval a positive development that would help boost investors’ confidence and make it possible for the government to tap international markets for the commercial borrowing.
Dr. Khaqan Hassan Najeeb, senior economist and former adviser to the government, said Pakistan’s engagement with the IMF could strengthen the nascent macroeconomic stability.
“It will ensure the $26 billion, Pakistan’s gross financing needs are fully met and can bring the other lenders, commercial banks, bilateral and multilateral partners on board,” he told Arab News.
“More importantly, it buys Pakistan time and breathing space to do the structural work that is necessary to put the economy on a path that it does not have to go to the doorsteps of the IMF for the 26th time,” he said.
Ahsan Mehanti, chief executive officer of Arif Habib Corporation, one of Pakistan’s leading business groups termed the IMF loan approval “a positive development,” saying this would help the country get the bilateral and multilateral support from different financial institutions including activation of $2 billion loan from the Asian Development Bank.
“This IMF loan program will help the stocks reach new heights with a boost to investor confidence and stabilize the rupee against the US dollar,” Mehanti told Arab News.
The IMF said in its statement the three-year loan program “will require sound policies and reforms” to support Pakistan’s ongoing efforts to strengthen its economy “and create conditions for a stronger, more inclusive, and resilient growth.”
It acknowledged Pakistan “has taken key steps to restoring economic stability with consistent reforms,” though it noted that the country’s vulnerabilities and structural challenges remained formidable.
“A difficult business environment, weak governance, and an outsized role of the state hinder investment, which remains very low compared to peers,” it added.
IMF Chief Kristalina Georgieva also held a brief meeting with the Pakistani prime minister on the sidelines of the 79th United Nations General Assembly Session.
“We do have good news,” she told the media following the meeting. “We have completed the review of the [loan] program successfully. I want to congratulate the government of Pakistan and the people of Pakistan for moving forward with the home-defined, Pakistan-owned reforms, and they are bringing fruits. Growth is up. Inflation is down. The economy is on a sound path.”
“The government aims to collect taxes from the rich and strengthening the Benazir social program to support the poor,” she added.
With input from AFP
IMF executive board approves $7 billion loan program for Pakistan
https://arab.news/m6gyz
IMF executive board approves $7 billion loan program for Pakistan
- Pakistani PM welcomes deal, thanks Saudi Arabia, UAE, China for continued support to get loan package
- Economists say the program will strengthen macroeconomic stability, help in talks with other financial agencies
Pakistan approves first national gemstones policy, targets $1 billion exports
- Government seeks to overhaul certification, mining, processing to curb smuggling and boost value-added exports
- Move follows broader push to tap Pakistan’s vast mineral wealth and attract much-needed foreign investment
ISLAMABAD: Pakistan has granted in-principle approval to its first national policy framework for gemstones and precious stones, aiming to reform the sector, align it with international standards and lift annual exports to $1 billion within five years, the prime minister’s office said on Friday.
The decision was taken during a meeting chaired by Prime Minister Shehbaz Sharif, which reviewed reforms for the largely underdeveloped gemstones sector despite Pakistan holding significant reserves of emeralds, rubies, sapphires, peridot and topaz.
The move comes as Pakistan intensifies efforts to monetize its untapped mineral resources amid fiscal pressures and an IMF-backed reform program. Over the past two years, Islamabad has hosted international minerals conferences and signed cooperation agreements with countries including the United States, Saudi Arabia and China to improve governance, attract foreign investment and move up the value chain in mining and minerals processing.
Despite officials estimating Pakistan’s gemstone reserves at around $450 billion, formal exports remain negligible, at about $5.8 million annually, due to weak certification systems, limited domestic processing capacity, widespread smuggling and fragmented regulation across federal and provincial authorities.
“Sharif has granted in-principle approval to a national policy framework to reform Pakistan’s gemstones and precious stones sector and align it with international standards,” the PM’s office said in a statement.
“The Ministry of Industries and Commerce, after identifying challenges during the preparation of the national policy framework, has developed a comprehensive set of priority policy measures which aim to achieve $1 billion in gemstone-related exports within five years through sectoral reforms.”
According to the statement, the policy framework includes geological mapping to accurately assess reserves, the establishment of internationally accredited laboratories and certification regimes and the creation of a dedicated authority to regulate and promote the sector. The government also plans to set up a National Warranty Office and at least two centers of excellence this year to support training, research and value-added processing.
The policy prioritizes private sector participation, particularly encouraging young entrepreneurs, and seeks to shift Pakistan away from exporting raw stones toward domestic cutting, polishing and branding. The statement said this approach could significantly increase export earnings while generating skilled jobs.
The prime minister also directed the ministry of finance to ensure timely allocation of financial resources required to implement the reforms and stressed the need to involve provincial governments, industry stakeholders and international experts to address structural bottlenecks.
“Pakistani precious stones are renowned globally for their quality, and curbing smuggling while ensuring exports through legal channels will secure billions of dollars in foreign exchange,” the prime minister said, according to the statement.
