Prime Minister Shehbaz Sharif on Wednesday stressed the need to honour the International Monetary Fund (IMF) commitments, insisting that the government could not bid farewell to the programme just yet. In July last year, Pakis\u00adtan and the IMF reached a three-year, $7 billion aid package deal, giving much-needed respite to the cash-strapped nation. Under the programme, the global lender mandated Pakistan prioritised better public spending, fairer and more efficient taxation \u2014 especially from under-taxed sectors \u2014 and creating fiscal space for increased spending on health, education, and social protection programmes. That aside, it asked the country to impose a substantial levy on gas supply to industrial captive power plants (CPPs) to eliminate any cost-benefit between the grid power and their in-house electricity generation. The IMF also called for restructuring state-owned enterprises (SOEs) and improving public services, along with governance and transparency measures. While talking to the business community at the Pakistan Stock Exchange today, the premier said, \u201cWe need to honour IMF commitments \u2014 we can\u2019t just say tata bye bye (dismiss the programme on a whim) once we take off. \u201cWe will say goodbye to it forever once the time is right,\u201d he said. Regarding the business community\u2019s role, the premier insisted that the government and the business leaders needed to \u201cbuild their relationship to achieve those targets\u201d, giving the example of their tax targets. \u201cIf you look at what IMF stated [their target as]10.6 tax-to-GDP ratio, we have achieved 10.8,\u201d he said. \u201cIt\u2019s something to celebrate but this is not enough \u2014 this is just the beginning.\u201d The premier insisted that there was a need for investment now, recounting that the State Bank of Pakistan\u2019s (SBP) interest rate went from a record-high of 22 per cent to 13pc. \u201cInvestors here say there is still a gap of 8 points \u2014 I would want it to go to 6pc,\u201d he stressed, \u201cBut it has to be done with an alert mind, with prudence, so we don\u2019t get trapped in the future. \u201cWe have to move bravely but with caution,\u201d he added. \u201cRegarding that, how do we actualise export-led growth? Everyone says growth should be export-led, that FDI [foreign direct investment] should be export-led so that profits come and dollars are present so we can retain them \u2014 all very well said but I need tangible proposals on how to implement export-led growth.\u201d The prime minister went on to compare Pakistan with Saudi Arabia \u201cin a different context to the world\u201d, highlighting that the country had mines and minerals while Saudi Arabia had \u201cblack gold\u201d. PM Shehbaz insisted the country had to head towards growth, adding that he knew that critics often spoke about \u201cthe engine heating up\u201d and \u201cPakistan heading towards a boom-bust cycle once again\u201d when it came to pursuing growth. \u201cA lot of experts have spoken and writers have written about it, but I invite you to come tell us what other way is there?\u201d he rhetorically asked. On the privatisation issue, the premier said that the process had been entirely transparent, citing the example of Pakistan International Airlines (PIA) which the government failed to privatise in the first attempt. \u201cThe entire process was 100pc transparent just like Islamabad Airport, the privatisation process for which is about to be concluded in the next few days,\u201d he said. Meanwhile, the KSE-100 index declined by 1904.23 points, or 1.64pc, to stand at 114,148.45 points from the last close of 116,052.68. PM Shehbaz arrived in Karachi on a day-long visit, where he was expected to hold meetings with the Sindh chief minister and the business community, state-owned Radio Pakistan reported. Upon his arrival at Karachi\u2019s Faisal Airbase, Sindh Governor Kamran Tessori and Chief Minister Murad Ali Shah welcomed him. During his visit, the premier is set to tour the South Asia Pakistan Terminal at Karachi Port Trust, in addition to inaugurating the Federal Board of Revenue (FBR)\u2019s Faceless Customs Assessment System there which aims to bring transparency to customs clearance, according to the report. Prior to visiting PSX, he also participated as the chief guest at the launch event of the Agha Khan University Manual of Clinical Practice Guidelines.<\/p>\n","protected":false},"excerpt":{"rendered":"
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