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Prime Minister Shehbaz Sharif on Sunday met Managing Director (MD) of the International Monetary Fund (IMF) Kristalina Georgieva on the sidelines of the World Economic Forum (WEF) special meeting in Riyadh, a statement from the Prime Minister’s Office (PMO) said. This was the first meeting between the prime minister and the IMF chief since his re-election. They last met in Paris in June 2023 on the margins of the Summit for New Global Financial Pact. The premier thanked Georgieva for her support to Pakistan in securing the $3 billion Standby Arrangement (SBA) from IMF last year that was now nearing its completion. The IMF executive board is expected to meet tomorrow to decide on the final tranche of USD 1.1 billion under SBA. The IMF MD appreciated the leadership of PM Shehbaz for timely securing SBA last year. The prime minister informed the IMF chief that his government was fully committed to put Pakistan’s economy back on track. He had directed his financial team, led by Finance Minister Muhammad Aurangzeb, to carry out structural reforms, ensure strict fiscal discipline and pursue prudent policies that would ensure macro-economic stability and sustained economic growth. Read more: PM Shehbaz to attend special WEF meeting in Riyadh today Both sides also discussed Pakistan entering into another IMF programme to ensure that the gains made in the past year are consolidated and its economic growth trajectory remains positive. IMF MD shared her institution’s perspective on the ongoing programme with Pakistan, including the review process. The premier also extended a cordial invitation to the IMF chief to visit Pakistan at her convenience. Finance Minister Muhammad Aurangzeb, earlier, said that Islamabad could secure a staff-level agreement on the new program by early July. Islamabad says it is seeking a loan over at least three years to help achieve macroeconomic stability and execute long-overdue and painful structural reforms, though Aurangzeb has declined to detail what size of the programme the country seeks. The country was yet to make a formal request, but the fund and the government are already in discussions. If secured, it would be Pakistan's 24th IMF bailout. Pakistan faces a chronic balance of payments crisis, with nearly $24 billion to repay in debt and interest over the next fiscal year - three-time more than its central bank's foreign currency reserves. The country's finance ministry expects the economy to grow by 2.6% in the fiscal year ending in June, while average inflation for the year is projected to stand at 24%, down from 29.2% the previous fiscal year. PM calls upon bridging gap in health sector Earlier in the day, PM Shehbaz called for bridging the widening gap between the Global South and the Global North while expressing his views during a session of the WEF on global health. The prime minister stated that the Covid-19 pandemic had exposed significant gaps between the Global North and Global South regarding health facilities provision and vaccine distribution. Also read: PM calls upon bridging gap between Global South and Global North in health sector He highlighted that the issue of climate change had also fundamentally altered the landscape. Pakistan, he asserted, bore no responsibility for global emissions; however, in 2022, it experienced severe climate-induced floods, causing extensive damage to infrastructure and buildings. Consequently, he added, the country had to allocate billions of rupees to rehabilitate the affected people. PM Shehbaz questioned whether a developing country like Pakistan could afford such costly loans and stressed that resources were required for providing health facilities. Sharing his personal experiences, the premier said that treatment for fatal diseases like cancer was too costly for the poor population of Pakistan. He said that as a chief minister of Punjab, he had provided about 130 million inhabitants of the province with the best medical treatment initiatives like screening and treatment facilities for Hepatitis in the remotest and backward areas of the province where the poor people had been in dire need of basic facilities like education and health. Meeting with IDB president During his meeting with the president of the Islamic Development Bank (IDB) earlier in the day, the premier was assured that the bank would complete its pending development projects in Pakistan at the earliest. The meeting also reviewed progress on ongoing projects and deliberated upon opportunities for future cooperation between Pakistan and the IDB. PM Shehbaz thanked the bank for its investments in Pakistan and appreciated its assistance in rehabilitation after the 2022 floods. He said the IDB’s fruitful partnership with Pakistan is instrumental in helping to achieve the government's sustainable development goals along with providing support for reconstruction and employment. The premier highlighted that the SIFC is fully functional to channel foreign investment in the country, addressing all concerns of foreign investors and providing a one-window operation. The IDB president said Pakistan is an important member of the bank and is blessed with rich natural and water resources. He stated that Pakistan's large manpower is an asset to be utilized optimally. With additional input from Reuters
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