Pakistan's military backs PM Sharif in push for IMF reforms
Pakistan’s Premier Shehbaz Sharif has one advantage over his predecessors as he tries to turn around a stricken economy -the all-powerful military’s desire for change.
Sharif’s administration recently secured a crucial 7 billion US dollar loan from the International Monetary Fund (IMF) and has committed to implementing difficult reforms, including boosting tax collection and increasing household energy prices by 20%.
While previous governments have made similar promises only to backtrack in response to public backlash, this time the military is fully backing the deal, according to government officials, diplomats, and analysts. The military, concerned that a prolonged economic crisis could worsen instability and jeopardize its significant financial interests, is keen to avoid a default.
Last year, Pakistan faced the risk of default as dwindling foreign reserves and import restrictions led to shortages of essential goods. Inflation surged to 38%, fueling widespread public discontent.
'The army is supporting the IMF program because they want to ensure Pakistan avoids default at any cost,' said a senior government official, who spoke on condition of anonymity.
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