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New Delhi: Pakistan Prime Minister Shehbaz Sharif has admitted that he and Army Chief, Field Marshal Asim Munir had to travel to various countries to seek financial help for the country. He was addressing top Pakistani exporters in Islamabad on Friday night. This rare confession from the top leadership of Pakistan, makes it amply clear how poor is the financial condition of the country.
Sharif's confession showed that the leadership had to make some tough decision due to Pakistan's economy. He however claimed that the condition of Pakistan's foreign reserves have improved. NDTV quoted the Pakistani leader as saying, "The current situation is that the reserves of the foreign exchange have almost doubled. But the loans of our friends and countries are included. But you know that the one who goes to take a loan, his head is bowed."
Sharif also talked about how General Munir and he had to make certain compromises to seek money from other nations. He said that it embarrassed both him and the Army General to go around the world and seek loans. He said, "Taking loans is a huge burden on our self respect. Our heads bow down in shame. We cannot say no to things that they want us to do."
These remarks by the PM of Pakistan come at a time, when the country is in active discussion with the International Monetary Fund (IMF) to help support economic growth in the country, after having followed the strict policies which the world body wanted it to follow for economic help.
Sharif claimed that his government had directed the central bank to support industrial growth in Pakistan and provide all possible monetary support to the industrialist. He said that the Governors had been instructed to take some bold decisions and consult with business leaders.
As of now, Pakistan has already availed a loan of USD 1.2 billion from the IMF. This loan has helped it to repay its debts and also build up foreign reserves. Apart from the loan, the country also treceived money under a climate financing plan of the UN body.
The Central Bank predicted that by December 2026, its foreign currency reserves will reach USD 20 billion. But to continue receiving monetary aid, the country needs to maintain a tight monetary spending and limit spending.
The State Bank of Pakistan kept its key rate steady at 10.5%, citing concerns that inflation may pick up. They have predicted that GDP will expand 3.75%-4.75% in the fiscal year to June.
