ISLAMABAD (Web Desk) – As Prime Minister Shehbaz Sharif took oath of his office for a second term, the first thing on his mind is the economic challenges that Pakistan is currently facing. That’s why he held a meeting with his team on Monday and directed them to begin talks with the International Monetary Fund (IMF) on an Extended Funding Facility (EFF).
A statement issued by the Prime Minister’s Office reads him as saying, "We got a mandate to improve country's economy and that's our government's top priority."
This development will certainly ease the nerves at the markets which can now see the direction of new government which would further be clearly visible with the choice of next finance minister.
In this connection, Reuter quoting the PML-N says former four-time finance minister Ishaq Dar remains the top contender, though several other candidates were being seriously considered.
The PM Office says the finance secretary briefed Shehbaz on the current economic situation of the country, as he vowed to provide maximum incentives to the business community and boost investment by adopting effective policies and legislation.
At the same time, the prime minister directed to expedite the privatisation process to get rid of loss-making state-owned enterprises (SOEs) – a move that will certainly help slashing budget deficit as well as meeting one of the main IMF conditions.
The IMF has been pressing Islamabad hard to private these entities which have been draining precious national resources, boosting the sentiments at the Pakistan Stock Exchange, as investors have been hoping that foreign investment would help propelling the undervalued stocks, especially in the energy sector.
On Monday, the benchmark KSE-100 Index gained nearly 1 per cent as Shehbaz was sworn in as prime minister, showing how anxious the market is about political stability in the country.
With the prime minister clear about his strategy regarding the IMF bailout and the privatisation, one can predict that the stocks will move in upward trajectory in the coming days and weeks.
Meanwhile, taking the required steps to provide loans to the youth and small and medium enterprises was also among the directives passed by the prime minister at the meeting, as the move will help generating the much-needed employment opportunities in Pakistan.