IMF Conditions Compromised Pakistan’s Dignity to Avert Default: PM

Prime Minister Shehbaz Sharif said on Tuesday that Pakistan crossed many red lines in its plight to meet conditions set by the International Monetary Fund (IMF). He told an open cabinet meeting yesterday that his government sacrificed its dignity to secure foreign loans and avoid a nasty default. He recalled extensive efforts, including visits to other nations to arrange $5 billion in external financing. He recalled discussions with the UAE ruler over a $2 billion loan rollover. Deputy Prime Minister Ishaq Dar announced that 20 onshore and 40 offshore oil and gas exploration licenses had been issued to help control Pakistan’s $130 billion foreign debt. He said Saudi Arabia, the UAE, Azerbaijan, and Kuwait have pledged a combined $27 billion in investments so far. Finance Minister Muhammad Aurangzeb noted the 71 percent rise in the Pakistan Stock Exchange and the highest current account surplus in 20 years. He outlined government efforts to rightsize ministries, reform pensions, and expand taxation. Plans to issue Green Sukuk and Panda Bonds aim to diversify funding sources and lower borrowing costs. Power Minister Awais Laghari detailed reforms in the energy sector, particularly the cancelation of power purchase agreements, which helped save Rs. 1.33 trillion. The premier also announced a Rs. 20 billion Ramzan relief package to assist four million families.