{"id":82459,"date":"2024-07-13T21:16:16","date_gmt":"2024-07-13T21:16:16","guid":{"rendered":"https:\/\/pakistaninewspaperlist.com\/news\/now-is-the-time-must-ensure-new-imf-programme-is-the-last-one-says-pm-shehbaz\/"},"modified":"2024-07-13T21:16:16","modified_gmt":"2024-07-13T21:16:16","slug":"now-is-the-time-must-ensure-new-imf-programme-is-the-last-one-says-pm-shehbaz","status":"publish","type":"post","link":"https:\/\/pakistaninewspaperlist.com\/news\/now-is-the-time-must-ensure-new-imf-programme-is-the-last-one-says-pm-shehbaz\/","title":{"rendered":"\u2018Now is the time\u2019: Must ensure new IMF programme is the last one, says PM Shehbaz"},"content":{"rendered":"<p><\/p>\n<div dir=\"auto\">\n<p>Prime Minister Shehbaz Sharif on Saturday said that Pakistan needed to embark on a \u201clong and difficult journey\u201d to prevent knocking on the doors of the International Monetary Fund (IMF) again.<\/p>\n<p>\u201cIf we want to get rid of loans, we need to consider this IMF programme as the final one,\u201d he said.<\/p>\n<p>In the wee hours of Saturday, the international lender <a href=\"https:\/\/www.dawn.com\/news\/1845536\/economy-gets-shot-in-the-arm-as-7bn-imf-deal-clinched\">announced<\/a> that Pakistan and the Fund had reached a three-year $7 billion aid package deal, giving much-needed respite to the nation.<\/p>\n<p>The programme, which needs to be approved by the IMF\u2019s Executive Board, should enable Pakistan to \u201ccement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth,\u201d it said in a statement.<\/p>\n<p>Coming to Pakistan in the form of loans, the latest bailout follows a commitment by the government to implement reforms, including a major effort to broad\u00ad\u00aden the country\u2019s tax base.<\/p>\n<p>Addressing a meeting at the headquarters of the Federal Board of Revenue (FBR) today, the premier congratulated Finance Minister Muhammad Aurangzeb and other cabinet members for clinching the programme.<\/p>\n<p>\u201cThis cabinet has done a great deal of work to make sure we achieved this goal,\u201d he said. \u201cBut, we need to pursue a long and difficult journey to augment our macroeconomic numbers. We will have to make sacrifices.<\/p>\n<p>\u201cNow is the time, it is our responsibility to act speedily and work tirelessly. Only then will this be the final IMF programme in this country,\u201d PM Shehbaz said.<\/p>\n<figure class=\"media  w-full  w-full  media--stretch  media--embed  \">\n<p><div class=\"ast-oembed-container \" style=\"height: 100%;\"><iframe title=\"PM Shehbaz Sharif Chairs Meeting at I FBR Headquarters I 13-07-2024\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/5dGwl42rYKI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/p>\n<\/figure>\n<p>He stated that putting extra taxes on taxpayers was like a \u201cpremium for those who don\u2019t pay [taxes] and it\u2019s a penalty for honest taxpayers\u201d. He added that the government needed to adopt new strategies and employ advanced technology used by tax authorities throughout the world.<\/p>\n<p>The PM expressed that it brought him pain whenever Pakistan had to approach the World Bank and other institutions for loans. \u201cWe collect billions, trillions and we\u2019re still going to the World Bank and others. A country cannot run like this.\u201d<\/p>\n<p>\u201cWith the finance minister and the FBR chairman as my witness, this is the last time I\u2019m saying it: whatever you need in the public interest to collect the last penny, which is our due right, I will spend whatever amount of money to acquire the gadgetries required for this purpose. It is our national interest and our duty,\u201d he affirmed.<\/p>\n<p>The prime minister further emphasised that now was the time for a \u201cparadigm shift\u201d.<\/p>\n<p>\u201cWe need to tighten our belts and serve the public,\u201d he said. \u201cFor the first and last time, we need to act in the national interest. If there\u2019s any honest mistake, we\u2019ll rectify that. I will quit if I need to, but I will not come under any pressure, I want that to be loud and clear.\u201d<\/p>\n<p>Earlier, <em>Geo News<\/em> <a rel=\"noopener noreferrer\" target=\"_blank\" class=\"link--external\" href=\"https:\/\/www.geo.tv\/latest\/554010-imf-programme-to-help-achieve-macroeconomic-stability-finance-minister\">quoted<\/a> the finance minister as saying that the new IMF deal would aid Pakistan in achieving macroeconomic stability.<\/p>\n<p>Under the programme \u201cwe need to ensure structural reforms and bring self-sustainability in areas of public finance, energy, and state-owned institutions\u201d, he said.<\/p>\n<h2><a id=\"imf-statement\" href=\"#imf-statement\" class=\"heading-permalink\" aria-hidden=\"true\" title=\"Permalink\"\/>IMF statement<\/h2>\n<p>Faced with chronic mismanagement, Pakistan\u2019s economy has found itself on the brink, challenged by the Covid-19 pandemic, the effects of the war in Ukraine and supply difficulties that fuelled inflation, as well as <a href=\"https:\/\/www.dawn.com\/news\/1710561\">record flooding<\/a> that affected a third of the country in 2022.<\/p>\n<p>With its foreign currency reserves dwindling, Pakistan found itself in a debt crisis and was forced to turn to the IMF, obtaining its first <a href=\"https:\/\/www.dawn.com\/news\/1762368\">emergency loan<\/a> in the summer of 2023.<\/p>\n<p>The <a rel=\"noopener noreferrer\" target=\"_blank\" class=\"link--external\" href=\"https:\/\/www.imf.org\/en\/News\/Articles\/2024\/07\/12\/pr-24273-pakistan-imf-reaches-agreement-on-economic-policies-for-37-month-eff\">IMF statement<\/a> issued earlier today quoted the Fund\u2019s mission chief to Pakistan, Nathan Proter, as saying that the new programme \u201caims to capitalise on the hard-won macroeconomic stability achieved over the past year by furthering efforts to strengthen public finances, reduce inflation, rebuild external buffers and remove economic distortions to spur private sector-led growth\u201d.<\/p>\n<p>\u201cIn this regard, the authorities plan to increase tax revenues through measures of 1.5 per cent of GDP in FY25 and 3 per cent of GDP over the programme,\u201d the lender said. The increase in revenue collections will be achieved through \u201csimpler and fairer direct and indirect taxation, including by bringing net income from the retail, export, and agriculture sectors properly into the tax system\u201d.<\/p>\n<p>The statement added that federal and provincial governments have agreed to rebalance spending activities in line with the 18th Constitution Amendment by signing a \u2018National Fiscal Pact\u2019. Under the agreement, subjects including education spending, health, social protection, and regional public infrastructure investment will be devolved to provinces.<\/p>\n<p>The provinces have already committed to \u201cfully harmonising their Agriculture Income Tax regimes through legislative changes\u201d with the federal and corporate income tax regimes. The move will be implemented from Jan 1, 2025.<\/p>\n<p>The government will also improve the power sector\u2019s viability and minimise its losses through timely tariff adjustment, reforms, and refraining from further unnecessary expansion of generation capacity.<\/p>\n<p>\u201cThe authorities remain committed to undertaking targeted subsidy reforms and replace cross-subsidies to households with direct and targeted BISP support.\u201d<\/p>\n<p>The authorities will improve SOE operations and management as well as privatisation, in which the most profitable entities will be prioritised.<\/p>\n<p>The government is also working towards \u201cphasing out\u201d incentives to Special Economic Zones, agricultural support prices and related subsidies, while refraining from new regulatory or tax-based incentives, or any guaranteed return \u201cthat could distort the investment landscape. \u201cThe authorities have also committed to advance anti-corruption as well as governance and transparency reforms, and gradually liberalise trade policy,\u201d the statement concluded.<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Prime Minister Shehbaz Sharif on Saturday said that Pakistan needed to embark on a \u201clong and difficult journey\u201d to prevent knocking on the doors of the International Monetary Fund (IMF) again. \u201cIf we want to get rid of loans, we need to consider this IMF programme as the final one,\u201d he said. In the wee [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":82460,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/i.dawn.com\/large\/2024\/07\/131440231f0207d.png?r=144055","fifu_image_alt":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-82459","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pakistan"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/posts\/82459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/comments?post=82459"}],"version-history":[{"count":0,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/posts\/82459\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/media\/82460"}],"wp:attachment":[{"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/media?parent=82459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/categories?post=82459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pakistaninewspaperlist.com\/news\/wp-json\/wp\/v2\/tags?post=82459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}