Islamabad: Prime Minister Shehbaz Sharif thanked Pakistan’s “brotherly countries” Saudi Arabia, UAE, and China on Thursday for helping Islamabad successfully negotiate a $3 billion stand-by agreement (SBA) with the International Monetary Fund (IMF) that helped save the country from defaulting on its loan obligations.
In March, the IMF asked Pakistan to secure financing assurances from friendly states and multilateral donors as a pre-condition to releasing a $1.1 billion tranche from an Extended Fund Facility program that Pakistan entered in 2019. Subsequently, China rolled over a $2 billion loan and Saudi Arabia and the UAE pledged $2 billion and $1 billion respectively.
Hours before the IMF’s Executive Board gave the formal nod for the SBA agreement on Wednesday, Finance Minister Ishaq Dar announced that the UAE had deposited $1 billion in Pakistan’s central bank. The development took place a day after Saudi Arabia deposited $2 billion in the State Bank of Pakistan (SBP) to shore up the South Asian country’s foreign exchange reserves.
“Today on behalf of the entire nation, I would like to thank profusely Pakistan’s great friends and brotherly countries China, Saudi Arabia, and the UAE who once again wholeheartedly cooperated with Pakistan during extremely difficult times,” Sharif said during his televised address to the nation.
Sharif said Pakistan would never forget the help it received from China, Saudi Arabia, and UAE in securing the IMF bailout package.
“The role played by China’s honorable President Xi Jinping, Saudi Arabia’s Crown Prince Mohammed bin Salman and UAE’s President Mohammed bin Zayed Al Nahyan to help Pakistan out of its economic crisis, deserves immense praise,” he added.
At the beginning of his address, Sharif reiterated his government’s tenure would end in August.
“The responsibility that you entrusted me as prime minister in April 2022, for the sake of the welfare of the country and yours, we will hand over this sacred trust to an interim government in August 2023, God willing,” Sharif said.
Sharif blamed former prime minister Imran Khan’s government for planting “landmines” that resulted in Pakistan suffering from an economic meltdown. He called on the people of Pakistan to work for the country’s economic revival so Pakistan can shed its dependence on loans.
“It is now time for us to stand on our own feet and regain our lost status. We have no other way,” Sharif said, adding that Pakistan had created a Special Investment Facilitation Council (SIFC) to bring about an economic revival in the country.
