By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif on Tuesday emphasised “breaking the economic straitjacket” through structural changes while declaring the renewal of the International Monetary Fund (IMF) programme crucial to Pakistan’s economy.
IMF
Shehbaz Sharif stated in a tweet that the initiative gave a means to re-orient Pakistan’s economy, but that they would have to work hard to become self-sufficient.
“Revival of program, though critical to our economy, is not an end in itself. It offers a pathway to reorient our economy. We will have to work hard to make it self-sufficient,” he said.
“Pakistan must break out of the economic straitjacket, which is only possible through structural reforms.”
His remarks come a day after the IMF board approved the seventh and eighth assessments of Pakistan’s bailout programme, releasing more than $1.1 billion to the country’s cash-strapped economy.
The IMF agreed to prolong the programme by a year and increase total funding by 720 million SDRs, or nearly $940 million at current exchange rates.
According to the planning minister, the monies would be a lifeline for the country, which has been devastated by terrible floods that have caused at least $10 billion in damage. IMF Deputy Managing Director Antoinette Sayeh said in a statement that adhering to scheduled hikes in fuel levies and energy rates is “important” because Pakistan’
economy “has been buffeted by unfavourable external conditions.”
