Govt making efforts to pull country out of economic turmoil: PM

Prime Minister Shehbaz Sharif on Wednesday said that the coalition government is making all-out efforts to bring the economy out of the prevailing quagmire and put the country ahead on the path of development and prosperity. Talking to a delegation of Council of Pakistan Newspapers Editors (CPNE) in Islamabad, he said the fears of default have ended now due to prudent policies of the government implemented during its eleven months in power. About ongoing talks with International Monetary Fund, the premier expressed confidence that an agreement with the IMF would be inked very soon. Read Restoration of economy a difficult task, says Miftah He said the government has to accept the tough conditions of the IMF due to the previous government's agreement. Shehbaz added the present government is cognizant of the sufferings of common people due to the prevailing economic situation. The PM lauded the role of all the coalition partners for running the government's affairs effectively saying that the government is united and moving ahead to bring the country out of economic turmoil. Pakistan has managed to convince the International Monetary Fund (IMF) to reduce external additional loan requirements to $6 billion amid the government’s desire to give a Rs150 billion subsidised petrol package to motorcyclists. In order to avoid an objection by the IMF, roughly Rs150 billion annual subsidy on account of Rs25 to Rs50 per litre is planned to be recovered from car owners, according to discussions that took place at the Prime Minister’s House on Monday. “The proposal is to raise the petrol price in the range of Rs300 to Rs325 per litre for car owners but reduce it to Rs250 to Rs225 per litre for motorcyclists,” according to sources. Prime Minister Shehbaz Sharif is throwing a new challenge to the economic team at a time when the finance ministry and the State Bank of Pakistan (SBP) are already grappling with the issues of arranging $6 billion more loans and a further hike in the interest rates. A high-ranking government functionary told The Express Tribune that the IMF and Pakistan last week found a middle ground on the issue of external financing gap. “Against the IMF’s earlier estimates of $7 billion external financing gap, both sides have now agreed to reduce the estimates to $6 billion,” he added. The $1 billion reduction in financing needs means, lowering the new loan requirement by the same amount.

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