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How Beneficial is the new IMF Program for the Pakistan's Economy | Shabbar Zaidi's Opinion
How Beneficial is the new IMF Program for the Pakistan's Economy | Shabbar Zaidi's Opinion
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00:00A few moments ago, IMF approved a loan for Pakistan.
00:06Pakistan will receive $7 billion.
00:09In the next 37 months, the first installment will be received on September 30,
00:13which will be approximately $1.1 billion.
00:15So, IMF has approved a $7 billion bailout package for Pakistan.
00:18And its duration, as we have said, will be 37 months.
00:22The first installment of the program will be received by Pakistan by September 30.
00:27Some economic experts say so.
00:30And the government also says that with the approval of the IMF loan,
00:32the pressure from external parties will now end or decrease.
00:36Prime Minister Shahbaz Sharif says he is satisfied with the approval of the package.
00:41He says, by the grace of Allah, economic reforms are being implemented rapidly.
00:44After the economic recovery, we will continue to work for the goals of economic development.
00:49The State Bank Governor says that the government has adopted a strict economic policy for the IMF loan program.
00:54And it is expected that Pakistan will receive more than $1 billion in the first installment.
00:58In this regard, the Prime Minister of Pakistan in the United States admits that the conditions of the IMF were very strict.
01:04But he says that we have fulfilled those conditions.
01:07And he also thanked two Somalis in this regard.
01:09What did Mr. Shahbaz Sharif say?
01:12There is a board meeting of the IMF.
01:14So, we have fulfilled all their conditions.
01:18The conditions were very strict.
01:19We have fulfilled them, by the grace of Allah.
01:21I would like to express my gratitude to the countries of Saudi Arabia, China and the UAE.
01:34Without their full cooperation, this would not have been possible.
01:39Our government and institutions have not only accepted the economic challenges,
01:50but have also worked hard day and night to gradually improve the economic indicators.
02:00This is what the government has to say.
02:01Let's talk to some economic experts and try to find answers to some innocent questions.
02:07How good or bad is this development for the economy of Pakistan?
02:12Will the conditions of the common man improve?
02:15Will the speed at which the economy was deteriorating decrease?
02:20What are the economic indicators that we have mentioned?
02:22Are they really encouraging?
02:24We will try to find out in simple words.
02:26After that, we will talk about politics in the second part of the program.
02:28But we have limited the first part to today's latest developments.
02:33We have two very relevant people with us today.
02:35They are experts on complex issues such as the economy.
02:39But they also have the ability to talk in simple words.
02:43They are also very relevant.
02:45One is the Minister of Finance of Pakistan.
02:50I would like to thank Mr. Mifta Ismail.
02:53The other is the head of the Pakistan Tax Authority.
02:56He is responsible for tax collection, which is considered to be the most important part of the economy.
03:02He is the former chairman of the ABR.
03:04I would like to thank both of them.
03:07Let's try to understand from them.
03:09Mr. Shabbar, please explain to us.
03:11First of all, how good or bad is this development for the economy?
03:21In the name of God, the Most Gracious, the Most Merciful.
03:23Mr. Waseem Adami,
03:25The IMF program and the support we have received
03:30was necessary for the economy of Pakistan.
03:34It is also a good sign for the economy of Pakistan.
03:38According to me, this is a good step for the economy of Pakistan.
03:47But we should keep this in mind.
03:53Sometimes we ignore it.
03:57In any country in the world, in any economy,
04:01the IMF program does not come for the sake of the economy.
04:06Rather, it comes to support the declining state of the economy
04:10or the economies that are moving towards their default.
04:18Now you have to do what you have to do.
04:23Secondly, the IMF program is always anti-growth.
04:29It does not lead to growth.
04:31Rather, it condenses growth.
04:36But it is also true that if you compare September 2023 to 2024 in Pakistan,
04:45Pakistan's inflation and other things have improved.
04:49The main reason for this is, according to me,
04:52more than the actions of the government,
04:54it is an international event.
04:56For example, oil prices have substantially decreased.
05:00And because our overall growth has decreased,
05:05our dollar demand has decreased.
05:09So there is a stability in the dollar.
05:14We need to understand this.
05:17We need to understand that if a person has four rotis
05:23and he has taken a loan,
05:25then he gives two rotis to the lender
05:30and gives two rotis to his child.
05:33If you give two and a half rotis to the lender,
05:37the lender will be happy.
05:39But your child will have only one and a half rotis.
05:43Pakistan is going through this scenario today
05:46when Pakistan does not have rotis to feed its children
05:52but we are running our country by giving interest costs.
05:57So no matter how much you talk,
06:00the shape of Pakistan's economy is not what we think
06:06that there is a stream of milk and honey flowing here.
06:12To feed our children,
06:14we have to cut the rotis and give them to our lenders.
06:19And we will have to decide one day
06:22how long we will cut the rotis and give them to our lenders.