Prime Minister Shehbaz Sharif said the IMF pledged strong support to Pakistan amid devastating floods. He spoke during a ceremony for Rs1.225 trillion financing agreements with 18 banks. The prime minister joined the event virtually from New York. This deal will help Pakistan manage its economic challenges and flood recovery efforts.
The PM met IMF Managing Director Kristalina Georgieva on the sidelines of the UN General Assembly. She praised Pakistan’s economic reforms and offered significant financial support during the flood crisis. Shehbaz Sharif stressed that the floods’ economic impact must be factored into the IMF’s review process. This shows the IMF’s commitment to helping Pakistan in difficult times.
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An IMF team will soon visit Pakistan for the second review of the Extended Fund Facility (EFF). Meanwhile, the PM highlighted the successful efforts to reduce circular debt, a major economic hurdle. He explained that the government negotiated with power producers and plans to privatize power distribution companies next. These steps aim to strengthen Pakistan’s energy sector and economy.
Federal Minister for Energy Awais Leghari said circular debt has strained Pakistan’s economy and power sector. He described the resolution plan as part of broader government reforms. The plan aims to clear circular debt within six years. This will improve the power sector’s liquidity and boost investor confidence.
Read more: PM urges IMF to factor flood impact into bailout review
Finance Minister Muhammad Aurangzeb called the financing deal the largest in Pakistan’s history. He said it benefits both the government and investors. The government confirmed that the plan will not increase electricity costs for consumers. Instead, repayments will come from an existing surcharge, protecting households during tough economic times.