Pakistan PM says cash-strapped country has to seek another IMF bailout

Islamabad: Pakistan Prime Minister Shehbaz Sharif on Tuesday said his government is planning to approach the IMF for “another programme”, days after the cash-strapped country struck a staff-level agreement with the global lender regarding the disbursal of the final tranche of USD 1.1 billion.

Shehbaz, who took oath as the country’s premier on March 4 for a second time since 2022 amidst staggering economic and security challenges, said, “We have to do another IMF programme and it won’t work out without one.”

“Rome wasn’t built overnight,” the 72-year-old added while addressing the Tax Excellence Awards in Islamabad, The News International reported.

Washington-based IMF’s global team reached a staff-level agreement with the Pakistani authorities last week on the second and final review of Pakistan’s stabilisation programme supported by the global lender’s USD 3 billion standby arrangement approved in July last year.

Shehbaz, the younger brother of Pakistan Muslim League-Nawaz (PML-N) supremo and three-time former premier Nawaz Sharif, said, “While the programme has some limitations, it is important for ensuring economic stability.”

The prime minister, who came to power with the formation of a coalition government supported by the Pakistan Peoples Party and four smaller parties, reiterated that a “route will have to be taken to ensure economic stability as well as focus on the country’s growth, provide job opportunities to people and address inflation”.

Last week, Finance Minister Muhammad Aurangzeb also maintained that Pakistan will discuss an Extended Fund Facility (EFF) with the IMF in Washington next month, the report said.