After being sworn in, Prime Minister Shehbaz Sharif has directed immediate talks with the International Monetary Fund (IMF) for a larger and more extended bailout under its Extended Fund Facility (EFF) to address Pakistan’s economic challenges. He chaired a meeting focusing on the country’s economic rehabilitation and issued instructions to prepare an emergency action plan for overall economic improvement.
The Finance Secretary provided a detailed briefing on the country’s economic situation during the meeting. Notably, former Finance Minister Ishaq Dar, who remains in contention for the finance minister position, did not attend. Respected banker Mohammad Aurangzeb, another contender for the finance minister role, was among the participants.
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The ongoing $3 billion Stand-By Arrangement (SBA) program is set to end on April 12, 2024. The new government will need to decide whether to secure the final tranche of $1.1 billion under the existing program or begin negotiations for a new three-year EFF contract with the IMF. In response to the Prime Minister’s instructions, the Federal Board of Revenue (FBR) reportedly cleared tax refunds of Rs. 65 billion. The Prime Minister emphasized the importance of encouraging taxpayers who contribute to enhancing exports and value addition in the country’s economy.
Automation of FBR and other institutions was also highlighted as a priority to bring transparency to the Federal Board of Revenue. The Prime Minister emphasized the need to privatize loss-making state-owned institutions to prevent them from becoming a burden on the economy. Additionally, he issued directives for a committee to devise a clear strategy for reducing the privileges of members of boards of state-owned institutions.
Prime Minister Shehbaz Sharif called for the preparation of a plan for transitioning the power and gas sectors to smart metering to reduce line losses. He instructed banks and financial institutions to develop strategies for promoting small and medium businesses and urged the reduction of government size by merging or closing down unnecessary institutions.
The Prime Minister highlighted the significance of the Special Investment Facilitation Council (SIFC) for economic stability and pledged to minimize bureaucratic barriers, fostering an enabling environment for small and medium-sized businesses. The next meeting will specifically focus on the Federal Board of Revenue, and measures will be taken urgently to provide facilities to the business community, investors, and the youth. Various officials, including Senator Musadik Malik, Members of the National Assembly Ata Tarar, Shaza Fatima, Rumina Khurshid, Ahad Cheema, and Jahanzeb Khan, participated in the meeting.
