Prime Minister Shehbaz Sharif on Saturday said that Pakistan needed to embark on a “long and difficult journey” to prevent knocking on the doors of the International Monetary Fund again.
“If we want to get rid of loans, we need to consider this IMF programme as the final one,” he said.
In the wee hours of Saturday, the international lender announced that Pakistan and the Fund had reached a three-year $7 billion aid package deal, giving much-needed respite to the nation.
The programme, which needs to be approved by the IMF’s Executive Board, should enable Pakistan to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth,” it said in a statement.
Coming to Pakistan in the form of loans, the latest bailout follows a commitment by the government to implement reforms, including a major effort to broaden the country’s tax base.
Addressing a meeting at the headquarters of the Federal Board of Revenue, the premier congratulated Finance Minister Muhammad Aurangzeb and other cabinet members for clinching the programme.
“This cabinet has done a great deal of work to make sure we achieved this goal,” he said. “But, we need to pursue a long and difficult journey to augment our macroeconomic numbers. We will have to make sacrifices.
“Now is the time, it is our responsibility to act speedily and work tirelessly. Only then will this be the final IMF programme in this country,” Shehbaz said.
He stated that putting extra taxes on taxpayers was like a “premium for those who don’t pay [taxes] and it’s a penalty for honest taxpayers”. He added that the government needed to adopt new strategies and employ advanced technology used by tax authorities throughout the world.
The PM said that it brought him pain whenever Pakistan had to approach the World Bank and other institutions for loans. “We collect billions, trillions and we’re still going to the World Bank and others. A country cannot run like this.”“With the finance minister and the FBR chairman as my witness, this is the last time I’m saying it: whatever you need in the public interest to collect the last penny, which is our due right, I will spend whatever amount of money to acquire the gadgetries required for this purpose. It is our national interest and our duty,” he affirmed. The prime minister further emphasised that now was the time for a “paradigm shift”.
“We need to tighten our belts and serve the public,” he said. “For the first and last time, we need to act in the national interest. If there’s any honest mistake, we’ll rectify that. I will quit if I need to, but I will not come under any pressure, I want that to be loud and clear.” The prime minister said that the incumbent government had the sole agenda oF putting Pakistan on path of progress with consistent improvement in the economic indicators.
“Though it may be a difficult journey which requires collective and individual efforts, sincerity and sacrifices and putting forth the national interests supreme over all other interests,” he emphasized.Terming the staff level arrangement with International Monetary Fund as a positive omen for the country’s economy, he expressed the hope that IMF board would also give a go ahead in this regard.
The prime minister expressed the confidence that Pakistan could become a great and prosperous country with collective and individual efforts. He stressed upon levy of taxes and broadening of revenue resources with usage of latest technology practiced worldwide including help from the artificial intelligence and said that digitization of FBR was a step in this regard which should be fully utilized.
