Following Prime Minister Shehbaz Sharif’s second-term oath-taking, economic challenges took center stage. In a meeting with his team, he directed the initiation of talks with the International Monetary Fund (IMF) on an Extended Funding Facility (EFF). The move aims to address Pakistan’s economic woes, signaling a clear focus on economic recovery.
Shehbaz emphasized the mandate received to improve the country’s economy as the top government priority. The choice of engaging in IMF talks aligns with efforts to stabilize and strengthen the economic landscape. The announcement eased market concerns, providing clarity on the new government’s direction.
The Prime Minister’s Office mentioned discussions on potential finance ministers, with Ishaq Dar, a four-time finance minister, considered a top contender. The finance secretary briefed Shehbaz on the current economic situation, highlighting the commitment to provide incentives to the business community and enact effective policies to boost investment.
Privatization emerged as a key focus, aiming to expedite the process of divesting loss-making state-owned enterprises (SOEs). This move aligns with IMF conditions and is expected to contribute to reducing the budget deficit.
Market sentiments responded positively, with the Pakistan Stock Exchange’s benchmark KSE-100 Index gaining nearly 1% on Shehbaz’s oath-taking day. Investors anticipate stability and positive economic measures under the new government.
Additionally, Shehbaz directed steps to provide loans to youth and small and medium enterprises, aiming to stimulate economic activity and generate employment opportunities.
The outlined economic strategy provides insights into the new government’s priorities, fostering optimism in the market and setting expectations for positive developments in the coming days.
