The International Monetary Fund (IMF) no longer opposes a reduction in electricity prices, Prime Minister Shehbaz Sharif stated on Wednesday, putting to rest concerns about the global lender’s resistance.
Inflation-hit consumers in Pakistan have been struggling with unaffordable power tariffs in recent years. The sharp increase in electricity costs has triggered social unrest and forced industries to shut down in the $350 billion economy, which has contracted twice in recent years due to record-high inflation.
“The IMF chief has assured that Pakistan’s plan for lowering power tariffs will be given due consideration,” PM Shehbaz said while briefing a federal cabinet meeting about his recent visit to Dubai.
On Tuesday, the prime minister met IMF Managing Director Kristalina Georgieva on the sidelines of the World Government Summit (WGS) 2025 in Dubai. The meeting took place ahead of the first review of a $7-billion bailout scheduled for early March.
Chief of the Army Staff (COAS) General Syed Asim Munir accompanied PM Shehbaz on the official visit to Dubai, where both leaders also held discussions with United Arab Emirates (UAE) President Sheikh Mohammed bin Zayed Al Nahyan on bilateral relations and investment opportunities.
Addressing the cabinet, Shehbaz said his meeting with the IMF’s managing director focused extensively on Pakistan’s power sector challenges.
“I told her that industries can only function and economic growth can be achieved if the cost of production is reduced,” he stated, adding that the IMF official responded positively.
“The concern that the IMF would reject a power tariff reduction has now been dispelled,” Shehbaz said, highlighting that the global lender has invited Pakistan to present its proposal for lowering electricity prices.
The prime minister also praised his economic team for successfully negotiating the loan deal and implementing the agreed reforms, noting that the IMF had acknowledged their efforts. He led the cabinet in applauding the team’s role in securing the crucial bailout.
Speaking on Pakistan’s relationship with Saudi Arabia, Shehbaz reaffirmed that Riyadh has always been a trusted and brotherly partner. “Pakistan will never compromise on Saudi Arabia’s sovereignty, security, and territorial integrity,” he declared.
He also promised to enhance support for overseas workers by ensuring smoother financial transactions and highlighted a sharp rise in remittances, attributing the surge to the Pakistani diaspora’s trust in the government.
According to the State Bank of Pakistan (SBP), remittances sent to Pakistan surged to $20.8 billion in the first seven months of the fiscal year 2025, up from $15.8 billion (a 31.7% increase) in the previous year—signaling continued economic support from overseas workers.
Addressing the recent migrant boat disaster in Libya, where several Pakistanis lost their lives, the prime minister called for stringent action to curb human trafficking. “We must wake up and put an end to this dark trade,” he asserted.
In a statement from the Prime Minister’s Office (PMO), Shehbaz Sharif emphasized that Pakistan’s economy was on the path to long-term recovery, supported by the IMF-backed stabilization program.
IMF Managing Director Kristalina Georgieva echoed this sentiment in a post on X, saying, “I am encouraged by their strong commitment to Pakistan’s IMF-supported reforms and support their decisive actions.” She noted that these efforts would help pave the way for higher growth and increased job opportunities for Pakistan’s youthful population.
With the IMF review approaching, the government and central bank have expressed confidence in meeting their targets, despite Pakistan’s ongoing economic challenges following the bailout secured in September.
Tuesday’s meeting also centered on macroeconomic stability under the IMF program, fiscal discipline, and the government’s reform agenda. PM Shehbaz reaffirmed his commitment to maintaining reform momentum, particularly in areas such as taxation, energy efficiency, and private sector development.
Meanwhile, a three-member IMF mission is currently in Pakistan for an assessment under the Extended Fund Facility (EFF) program.
