Daily Times

Prime Minister Shehbaz Sharif on Sunday discussed new bailout package with the International Monetary Fund (IMF) Managing Director Kristalina Georgieva on the sidelines of the World Economic Forum Special Meeting in Riyadh.

In his first meeting with the IMF chief since his re-election, PM Shehbaz reiterated his government’s commitment to put Pakistan’s economy back on track, according to a statement issued by the PM Office.

Pakistan is seeking a new long-term Extended Fund Facility (EFF) after a current $3 billion Stand-By Arrangement (SBA) expires this month. Earlier, International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Sunday expressed her concerns about the economic situation of Pakistan. She was speaking at a World Economic Forum (WEF) session in the capital of Saudi Arabia, Riyadh.

She said that China’s performance in the first quarter was better than expected, while Pakistan was facing significant difficulties.

According to Georgieva, Egypt has performed better but it still has difficulties.

Expressing her thoughts she said: “The global economy had suffered more than $3 trillion losses due to the coronavirus pandemic. The less developed countries had to face more losses due to the pandemic.”

Some countries, like China and Indonesia, had steered out of the coronavirus crisis. Speaking about the economic situation of advanced economies, Georgieva said: “The economy of the United States is better, but the situation in the Eurozone is not good.”

She said that the performance of emerging markets like Indonesia, Malaysia and India is also good.

“The IMF has three basic priorities. The first priority is to bring inflation down to the target. It is also the IMF’s target to create a balance between income and expenditures,” said Georgieva. She said: “The pandemic and wars had depleted the reserves of many countries. There will be more hardships in the coming days.”

Separately, Shehbaz Sharif and President of Islamic Development Bank (IDB) Dr. Muhammad Sulaiman Al Jasser on Sunday agreed for early completion of different development projects financed by the institution in Pakistan.

The prime minister thanked the IDB for its $1 billion worth investment on different uplift projects in Pakistan during his previous tenure in office.

The president of IDB called on the prime minister on the sidelines of the special meeting of World Economic Forum (WEF), PM Office Media Wing said in a press release.

The meeting was attended by Minister for Foreign Affairs Ishaq Dar, Minister for Finance and Revenues Muhammad Aurangzeb, Minister for Information and Broadcasting Attaullah Tarar, Minister for Petroleum Dr Musadik Malik, Minister for Commerce Jam Kamal Khan and Minister for Power Awais Ahmed Khan Leghari.

During the meeting, progress on different projects in Pakistan was reviewed and the both sides discussed ways to explore further avenues for cooperation. The prime minister also lauded the IDP’s assistance in the rehabilitation of flood affected people and commended the personal cooperation and leadership role of Dr Al Jasser.

He observd that IDB’s beneficial partnership with Pakistan was not only providing job opportunities and assisting in reconstruction efforts but also supporting the government’s endeavours for achievement of objectives of sustainable progress.

The prime minister informed that for fast tracking the foreign investment, removing all concerns of foreign investors and provision of one window operation, Special Investment Facilitation Council (SIFC) was fully functional. The IDB president said that Pakistan was a founding and the most important member of the Bank.

He observed that the country was blessed with abundant natural and water resources and its huge manpower could be fully utilized. Dr Al Jasser also prayed for the progress and prosperity of Pakistan.