Prime Minister Shehbaz Sharif on Wednesday announced that concerns over the International Monetary Fund (IMF) rejecting a reduction in electricity prices had been put to rest.
Inflation-stricken consumers in Pakistan have been struggling with unaffordable power tariffs in recent years. These price hikes have fueled social unrest and led to the closure of industries in the $350 billion economy, which has contracted twice in recent years as inflation hit record highs.
“The global lender’s chief has assured that Pakistan’s plan for lowering power tariffs will be given due consideration,” the premier said while briefing the federal cabinet about his recent visit to Dubai.
PM Shehbaz met IMF Managing Director Kristalina Georgieva on the sidelines of the World Government Summit (WGS) 2025 in Dubai on Tuesday, ahead of the first review of a $7-billion bailout scheduled for early March.
Chief of the Army Staff (COAS) General Syed Asim Munir also accompanied the prime minister on the official visit to Dubai, where they held talks with UAE President Sheikh Mohammed bin Zayed Al Nahyan on bilateral relations and investment opportunities.
Economic Challenges and IMF Negotiations
Shehbaz told the cabinet that in his meeting with the IMF chief, he discussed Pakistan’s power sector challenges in detail.
“I told her that industries can only run and economic growth can be achieved if the cost of production is reduced,” he said, adding that the IMF official responded positively.
“The concern that the IMF would not accept a power tariff reduction has now been dispelled,” Shehbaz said, adding that the international lender has invited Pakistan to present its plan for lowering electricity prices.
He praised his economic team for successfully negotiating the bailout and implementing agreed reforms, saying the IMF acknowledged their efforts. The prime minister also had the cabinet applaud the team’s excellent work.
Pakistan-Saudi Relations and Economic Stability
Shehbaz reaffirmed Pakistan’s strong ties with Saudi Arabia, calling Riyadh a “trusted and brotherly partner.” He assured that Pakistan would never compromise on Saudi Arabia’s sovereignty, security, and territorial integrity.
The premier also highlighted a significant rise in overseas remittances, attributing it to increased confidence among the Pakistani diaspora.
According to the State Bank of Pakistan, remittances surged to $20.8 billion in the first seven months of the fiscal year 2025, up 31.7% from $15.8 billion a year earlier.
Human Trafficking and Libya Boat Tragedy
Addressing the recent migrant boat disaster in Libya, where several Pakistanis lost their lives, Shehbaz called for strict action against human trafficking.
“We must wake up and put an end to this dark trade,” he asserted.
IMF Response and Reform Agenda
IMF chief Kristalina Georgieva expressed optimism, saying, “I am encouraged by their strong commitment to Pakistan’s IMF-supported reforms and support their decisive actions.”
These reforms, she said, would pave the way for economic growth and job creation for Pakistan’s young population.
Ahead of the IMF review, Pakistan remains confident in meeting its economic targets, despite ongoing financial challenges.
