Former Vice President of FPCCI Atif Ikram Sheikh said on Saturday that Finance Minister Ishaq Dar had explained the political role of the IMF in detail, which is highly laudable. The finance minister has firmly stated that geopolitics was behind the suspended programme as global institutions wanted Pakistan to default like Sri Lanka and then negotiate.
Finance Minister Ishaq Dar has exposed the IMF’s unholy designs and proved that the stalled programme of the lender had more to do with politics than its tough conditions, he added. Atif Ikram Sheikh, who has also served as President of ICCI and Chairman of PVMA, said in a statement issued today that despite exposing the lender, the FM is still optimistic that something concrete will emerge soon.
Pakistan is still negotiating with the IMF, but the finance minister has said in categorical terms that with or without the IMF, the country would meet its obligations, and there would be no default, he said.
The business leader said that the Chinese are also aware of the problems of Pakistan and efforts to force it to take unfavourable sides; therefore, they have rolled over deposits and refinanced commercial loans to the relief of Islamabad.
The Fund is delaying the programme’s revival and wasting time without any valid reasons for postponing the 9th Review.
The IMF demanded details of the budget for the next financial year, a demand that the minister resisted but then had to share after a telephonic conversation between Prime Minister Shehbaz Sharif and the Managing Director of the IMF.
The finance minister has taken a stand on concessions to different sectors and said that Pakistan, a sovereign country, cannot accept everything the IMF demands.
Pakistan’s economy is facing internal and external pressures of unprecedented nature, and based on that, the government prepared budgetary proposals to stimulate the stagnant economy and reduce dependence and heavy reliance on foreign loans.
Investors are pulling out of the country mainly because of the IMF conditions, citing the inflated cost of doing business and other problems.
Pakistan was left with no option but to offer incentives and subsidies to those sectors that could contribute meaningfully to bringing the economy back on track.
He observed that exemptions to IT, agriculture, and SME sectors were needed to spur growth, which plummeted to 0.29 per cent.
The business community stands behind the government in making Pakistan stand on its own two feet.