Islamabad, Pakistan – Prime Minister Shehbaz Sharif has emphasized the urgent need for Pakistan to free itself from its dependency on loans from the International Monetary Fund (IMF), asserting that long-term economic prosperity cannot be achieved under IMF programs. Speaking at the launch of the Prime Minister’s Digital Youth Hub in Islamabad on Thursday, he made it clear that reliance on external financial aid is detrimental to Pakistan’s growth, and the country must find ways to stand on its own feet economically.
The Prime Minister reflected on Pakistan’s financial history, noting that the country’s debt has steadily accumulated over the past 77 years. In a pointed remark, he added, “I pray this is Pakistan’s last IMF program. Countries do not prosper under IMF support,” signaling his intention to steer the nation away from continued IMF-backed financial programs that often come with stringent conditions and long-term financial constraints.
This statement comes just a day after Pakistan and the IMF reached a staff-level agreement (SLA) concerning the first review of Pakistan’s $7 billion Extended Fund Facility (EFF). The agreement, which is pending approval from the IMF Executive Board, will unlock approximately $1 billion in funds, bringing the total disbursement under the EFF to $2 billion. In addition, an extra $1.3 billion has been agreed upon under the Resilience and Sustainability Facility (RSF), further extending Pakistan’s financial cooperation with the IMF.
While acknowledging the necessity of such financial arrangements in the short term, Prime Minister Shehbaz’s comments reflect growing frustration with the continual reliance on foreign financial institutions to stabilize Pakistan’s economy. His words resonate with many Pakistanis who feel that the IMF’s financial programs place undue pressure on the nation, imposing austerity measures and structural reforms that may hinder economic growth in the long run.
The Prime Minister also highlighted the success of the government’s recent fiscal efforts, specifically noting the recovery of Rs. 34 billion from the banking sector by tax authorities. This success was largely attributed to the government’s crackdown on collusion between the Federal Board of Revenue (FBR) and taxpayers, which helped boost the country’s tax revenues and reduce financial malpractices.
A significant milestone in this crackdown came with the recent decision by the Lahore High Court, which vacated a stay order on the windfall income tax on banks, resulting in an additional Rs. 11.5 billion being added to the national treasury. This, combined with the earlier recovered amount, brought the total financial benefit to Rs. 34.5 billion within a month—a major achievement for the government’s revenue collection efforts.
Prime Minister Shehbaz’s remarks have sparked discussions about Pakistan’s financial sovereignty and the need for sustainable economic policies that do not rely on external loans. His call for self-sufficiency aligns with broader concerns within the country about the long-term consequences of continuous borrowing and the need for structural reforms that address Pakistan’s economic challenges without external dependencies.
The launch of the Digital Youth Hub, aimed at empowering the country’s youth with digital skills, is seen as part of the government’s broader strategy to invest in human capital and drive innovation to reduce reliance on external financial support. By fostering a more skilled workforce and supporting the growth of the digital economy, the Prime Minister hopes to set the stage for a more independent and prosperous future for Pakistan.
As Pakistan navigates through its ongoing economic challenges, Prime Minister Shehbaz Sharif’s call for an end to reliance on IMF loans represents a bold vision for the country’s economic independence and growth. The path forward will require careful balancing of fiscal responsibility, structural reforms, and investments in local industries to ensure that Pakistan can achieve sustainable economic prosperity.