Prime Minister Shehbaz Sharif Hails IMF’s Approval of $1 Billion Tranche for Pakistan, Calls India’s Undermining Attempts a Failure
Record surge in remittances reflects expatriates' trust in economic policies: PM
Islamabad: The International Monetary Fund (IMF) executive board approved the first review of Pakistan’s $7 billion loan program on Friday, releasing a $1 billion tranche to support the country’s economic stabilization efforts. The Pakistani government confirmed the development, with Prime Minister Shehbaz Sharif expressing satisfaction over the decision, calling it a significant achievement for the nation.
In a statement issued by his office, the Prime Minister commended the efforts of Deputy Prime Minister and Foreign Minister Ishaq Dar, Finance Minister Muhammad Aurangzeb, Finance Secretary Imdadullah Bosal, and the broader economic team for their role in securing the IMF’s approval. He emphasized that Pakistan’s economic situation is steadily improving, attributing the progress to sound policies and effective reforms.
The approval comes amid heightened tensions with India, which had reportedly urged the IMF to reconsider its financial assistance to Pakistan following a recent attack on Hindu tourists in Indian-administered Kashmir. Prime Minister Shehbaz condemned India’s attempts to influence the IMF’s decision, stating that such efforts had been rightfully dismissed by international institutions. He reaffirmed Pakistan’s commitment to economic reforms, including tax system improvements, energy sector enhancements, and private sector growth, as key drivers of long-term stability.
Meanwhile, the Prime Minister also highlighted a record 31% increase in remittances during the first ten months of the fiscal year 2025, reaching $31.2 billion. He praised overseas Pakistanis for their contributions, stating that the surge reflects their confidence in the government’s economic policies.
The IMF’s decision follows a staff-level agreement reached earlier, though the fund has yet to issue an official statement. The board was also expected to discuss a separate $1.3 billion sustainability loan for Pakistan over a two-year period.
As regional tensions persist, Pakistan and India have traded accusations of cross-border drone and artillery attacks, further complicating the geopolitical landscape. Despite these challenges, the government remains focused on economic recovery, with the latest IMF tranche expected to bolster foreign exchange reserves and support ongoing reform initiatives.
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