ISLAMABAD, March 27: Prime Minister Shehbaz Sharif has stressed the need for Pakistan to end its reliance on the International Monetary Fund (IMF), asserting that while IMF programs help stabilize economies, they do not lead to long-term prosperity.
Speaking at the launch of the Prime Minister’s Digital Youth Hub in Islamabad on Thursday, he highlighted the country’s mounting debt over the past 77 years and expressed hope that the current IMF program would be Pakistan’s last.
IMF Agreement and Loan Disbursement
His remarks followed the announcement that Pakistan and the IMF have reached a Staff-Level Agreement (SLA) for the first review of the $7 billion Extended Fund Facility (EFF), along with a $1.3 billion Resilience and Sustainability Facility (RSF).
The deal awaits approval from the IMF Executive Board.
Once approved, Pakistan will gain access to $1 billion (SDR 760 million) under the EFF, bringing total disbursements under the program to approximately $2 billion.
“This is a step towards the IMF Governing Bodies meeting in May, where they will approve our next tranche of $1 billion,” PM Shehbaz stated. However, he pointed out, “This is a loan, not an earned income.”
Empowering Youth for Economic Growth
To break free from debt-driven existence, the prime minister emphasized the role of youth empowerment in strengthening Pakistan’s economy.
He underscored the importance of Information Technology (IT), Artificial Intelligence (AI), and vocational training, stating that investing in these fields could transform Pakistan into a leading global economy within a few years.
Crackdown on Tax Evasion
PM Shehbaz also discussed the recent Rs34 billion recovery from the banking sector, attributing it to the government’s crackdown on collusion between the Federal Board of Revenue (FBR) and taxpayers.
A key contributor to this financial gain was the Lahore High Court’s recent decision to lift a stay order on the taxation of windfall income from banks, which resulted in a Rs11.5 billion benefit to the national exchequer.
In total, the exchequer gained Rs34.5 billion in just one month.
PM Shehbaz reaffirmed his commitment to economic stability and self-sufficiency, urging the youth to lead the country towards financial independence through skills development and innovation.
While IMF programs provide temporary stability, he emphasized that true economic strength lies in self-reliance and sustainable growth initiatives.
