Islamabad, Pakistan – Prime Minister Shehbaz Sharif has emphasized the urgent need for Pakistan to break free from its continued reliance on loans from the International Monetary Fund (IMF), stressing that such financial programs do not lead to long-term prosperity. Speaking at the launching ceremony of the Prime Minister’s Digital Youth Hub in Islamabad, he expressed his concern over the country’s growing debt over the past 77 years, and his desire to see Pakistan’s reliance on external financial assistance come to an end.
In his address, PM Shehbaz asserted, “Countries do not prosper under IMF programs. They can only stabilize their economy.” His comments came in the wake of Pakistan and the IMF reaching a staff-level agreement (SLA) on the first review of the $7 billion Extended Fund Facility (EFF), as well as a new agreement of $1.3 billion under the Resilience and Sustainability Facility (RSF). The agreement, subject to approval from the IMF’s Executive Board, would provide Pakistan with access to about $1 billion (approximately SDR 760 million) under the EFF, bringing total disbursements to about $2 billion. This is a significant milestone for Pakistan’s financial management, but the Prime Minister remains critical of the country’s ongoing debt-driven existence.
Prime Minister Sharif emphasized the importance of economic self-sufficiency. He acknowledged the immediate necessity of stabilizing Pakistan’s economy through international financial support but expressed a firm commitment to seeing the country transition to an era where it no longer depends on loans to survive. “I pray this current IMF program is the last in Pakistan’s history,” he remarked, highlighting the need to build a more sustainable economic foundation without relying on borrowed funds.
The Prime Minister’s remarks come at a crucial time, as the IMF’s Executive Board is scheduled to meet in May to approve the next tranche of $1 billion in funds for Pakistan. While Pakistan’s leadership remains engaged with the IMF to ensure the country’s immediate economic stability, PM Shehbaz’s message clearly outlines the government’s long-term goal: to empower the nation to stand independently and confidently in the global economy.
PM Shehbaz also highlighted the importance of youth empowerment in achieving these economic goals. He underscored the role of Information Technology (IT), Artificial Intelligence (AI), and vocational skills development in shaping the future of Pakistan’s workforce. “If we invest in training and modern technology for our youth, Pakistan can become one of the most developed nations in just a few years,” he added. This focus on technological advancement and skill-building is central to the government’s broader vision of fostering a future-ready workforce that can drive the country’s economy toward self-sufficiency and prosperity.
In addition to his remarks on IMF loans, the Prime Minister discussed the Rs 34 billion recently recovered from the banking sector by tax authorities. This achievement was made possible through the government’s efforts to address collusion between the Federal Board of Revenue (FBR) and taxpayers. He credited the Lahore High Court’s decision to vacate a stay order on taxes imposed on banks’ windfall income, which contributed Rs 11.5 billion to the national exchequer. Overall, the government’s actions have resulted in a Rs 34.5 billion boost to the nation’s finances in a single month.
PM Shehbaz’s remarks reflect a broader vision for Pakistan’s economic transformation. While acknowledging the importance of external financial support for stability in the short term, he stressed the need for long-term reforms that will enable the country to achieve economic independence and prosperity. By focusing on youth education, technological advancement, and tax reforms, Pakistan aims to shift from debt dependency toward sustainable economic growth, ensuring a better future for its citizens.