Pakistan PM Shehbaz Sharif’s confession

The IMF had recently given $1.2 billion to Pakistan as part of its ongoing loan programme and a separate climate-related financing plan.

Pakistan, Shehbaz Sharif, Pakistan Army, Asim Munir, Islamabad, economy, International Monetary Fund, IMF, GDP

New Delhi: In a strange turn of events, Pakistan’s Prime Minister Shehbaz Sharif openly admitted to a fact that the whole world has known for years. Shehbaz openly admitted that he and Pakistan Army Chief Field Marshal Asim Munir had to travel to different countries to ask for financial help.

Sharif on Pakistan’s economy

Sharif made this confession on Friday, January 30, during his address to top Pakistani exporters in Islamabad, where he spoke about the choices his government had to make because of the country’s economy.

“The current situation is that the reserves of the foreign exchange have almost doubled. But the loans of our friends and countries are included. But you know that the one who goes to take a loan, his head is bowed,” said Sharif, adding that the condition of Pakistan’s foreign reserves had improved.

He and Asim Munir feel embarrassed, seeking help desperately

“We feel ashamed when Field Marshal Asim Munir and I go around the world begging for money. Taking loans is a huge burden on our self-respect. Our heads bow down in shame. We cannot say no to many things they want us to do,” Shehbaz said.

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Interestingly, the Pakistan PM made these remarks at a time when his country is in active discussions with the International Monetary Fund (IMF) for a plan to support economic growth after applying strict policies to stabilise the country.

Pakistan government’s directions to central bank and finance ministry

He said his government has directed the central bank and the finance ministry to support industrial growth by improving access to capital. “The governor has to listen to business leaders and take bold decisions,” said Sharif.

The IMF had recently given $1.2 billion to Pakistan as part of its ongoing loan programme and a separate climate-related financing plan. This amount helped Pakistan in repaying debt and building up its foreign reserves.

Pakistan’s foreign reserves to cross a record $20 billion

The central bank predicted this week that by December, its foreign reserves will cross $20 billion – a record. However, it requires Pakistan to maintain a tight monetary policy and restrain spending.

State Bank of Pakistan, the central bank, this week unexpectedly kept its key rate steady at 10.5%, citing concerns inflation may pick up while forecasting GDP will expand 3.75%-4.75% in the fiscal year to June

Sharif also said his team, led by Finance Minister Muhammad Aurangzeb, had presented a strong case to the IMF. “I have told them that we have achieved stability and now we have to generate employment and reduce poverty,” he said.