Riyadh (October 23, 2018): Prime Minister of Pakistan Imran Khan on Tuesday discussed some of the biggest challenges facing his government and his plans to tackle those issues and said that Pakistan has contacted International Monetary Fund (IMF) for loan.
According to the details, Prime Minister Imran Khan addressed the Future Investment Initiative (FII) conference in Saudi Arabia and highlighted some of the challenges facing his government and his plans to tackle them.
PM said that the coming three to six months are really crucial for Pakistan.
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“We need new loans to pay-off our previous loans,” the premier said while speaking about Pakistan’s current economic situation. “We have approached the International Monetary Fund and our friendly countries,” he added.
Stating that his government has been in power for 60 days, the premier said, “The immediate concern for our government is to increase our exports so we can bolster our foreign exchange reserves.”
Warning that the next three to six months will be difficult for Pakistan, PM Imran said, “Our institutions were destroyed as corrupt people were in top positions but we are taking measures to increase exports.”
“Pakistan’s strength is overseas Pakistanis and we have to make conditions favourable for them to invest in the country,” he said.
“We need Pakistanis to send remittances through banking channels.” He also asserted, “We need to clamp down on money laundering”.
Speaking about his Naya Pakistan Housing Programme, PM Imran said, “There is a need for 10 million houses in Pakistan and we have embarked on a programme to build 5 million houses in the initial phase.”
“The reason I feel I have to avail myself of this opportunity is because, in a country of 210 million people right now, we have the worst debt crisis in our history,” he mentioned to the Middle East Eye (MEE) in an interview that was published on Monday.
He said that Pakistan was created to in the name of Islam.
Talking about corruption, he said that it destroys the countries and economies. He said that Pakistan is affected due to rampant corruption for years.
Replying a question regarding CPEC, Prime Minister said that CPEC provides great opportunities to the windows of investment.
“Pakistan has 100 million people below the age of 35,” he told his audience. “There is a big pressure on the government to find employment for this population.
“We have embarked on this programme that in the first five years we will build 5 million houses. We are also trying to create an enabling environment for investment; we have this big resource lying outside Pakistan.
“The plan is to create an enabling environment in Pakistan so that we could attract not just foreign investors, and not just overseas investors but our own investors.We are restructuring our duty sectors.”
The prime minister said that the mineral reserves in Pakistan could not be extracted due to terrorism and corruption issues in the past, adding that that will change now.
“There are vast amounts of mineral wealth in Pakistan,” he said. “We have hardly had any investment in our mineral resources and one of the reasons as I said in the last 15 years was the war on terror. Investors would not come back to Pakistan. We also had very poor governance and corruption.
“Now thanks to our security forces and intelligence agencies, Pakistan has brought terrorism under control. In December, Exxon is coming back to Pakistan.”
The premier vowed to facilitate foreign investors, and added that Saudi Crown Prince Mohammad bin Salman is already helping the country attract foreign investment.
PM Khan said he has asked the Chinese government to help Pakistan in two areas: eliminating corruption and ending poverty.
“China in the past five years has really clamped down on corruption,” he said. “We have corruption so we are going to look for ways, because white collar crime is very hard to convict.
“Secondly the way in which they have brought this huge amount of people out of poverty …we have already asked the Chinese government to help us in these two areas.”
The conference termed as “Davos in the Desert” has brought leading businessmen, investors, corporate giants, representatives of hi-tech industry and major media outlets at one platform.
Hundreds of bankers and company executives are expected to join officials at the annual event designed to help attract billions of dollars of foreign capital as part of reforms to end Saudi dependence on oil exports.
Earlier, Prime Minister arrived in Madina Munawara in the first leg of his visit. Governor Madina Prince Faisal Bin Salman welcomed the Prime Minister at the Airport.
Foreign Minister Shah Mahmood Qureshi, Finance Minister Asad Umar, Information Minister Chaudhry Fawad Hussain, Adviser on Commerce Abdul Razzaq Daud and Chairman Investment Board Haroon Sharif are also accompanied the Prime Minister.
The Prime Minister is paying the visit on special invitation of King Salman Bin Abdel Aziz.
PM Imran’s participation in the conference “signifies our solidarity with the Kingdom in its efforts to become an emerging hub of international business and investment”, the Foreign Office stated further.
Pakistan ‘Desperate’ For Loan To Shore Up Economy: PM
Earlier, in an interview with British news website, before departing for the Kingdom PM said: “we’re desperate for possible Saudi loans to shore up Pakistan’s economy.”
Prime Minister Imran Khan said that the country was going through the worst debt crisis of its history.
“The reason I feel I have to avail myself of this opportunity is because in a country of 210 million people right now we have the worst debt crisis in our history,” PM was quoted as saying.
Khan was reported to have said: “Unless we get loans from friendly countries or the IMF (the International Monetary Fund) we actually won’t have in another two or three months enough foreign exchange to service our debts or to pay for our imports. So we’re desperate at the moment.”
Khan has blamed the previous government’s policies for the ballooning current account deficit.
In response to a question, he told the MEE that he was concerned over the “shocking” death of Khashoggi — a US resident and Washington Post columnist — after he entered the Saudi consulate in Istanbul.
“The Saudi government will have to come up with an answer… We wait for whatever the Saudi explanation is,” he was quoted as saying. “We hope there is an explanation that satisfies people and those responsible are punished.”
Dubbed as “Davos in the Desert,” the conference was scheduled host leading businesspersons, investors, corporate giants, representatives of hi-tech industry, and major media outlets at one platform, the Foreign Office of Pakistan said in a press statement earlier.
Khan’s participation on the first day of the conference, which provides an opportunity to interact with important business leaders who are interested in investing in Pakistan, is aimed to projecting the country’s economic and investment potential as well as its vision for the next five years, the statement added.
The FII conference is now an annual feature in Saudi Arabia, with its first iteration being held last year, wherein some 3,800 people from 90 countries participated. This year’s conference is also likely to attract participation from a large number of leading figures.
Khan’s presence “signifies our solidarity with the Kingdom in its efforts to become an emerging hub of international business and investment”, the FO said further.
On the other hand, dozens of the confirmed participants had earlier dropped out in order to boycott Saudi Arabia over Khashoggi’s death.
Separately, the premier’s schedule also includes calling on King Salman bin Abdulaziz Al Saud and meeting the Crown Prince Mohammad Bin Salman, with whom he would discuss matters of mutual interest.
In response to a question, Khan also called on the US to abandon its push for new sanctions against Iran, saying the move could lead to wider conflict. “The last thing the Muslim world needs is another conflict.
“The Trump administration is moving towards one,” he told the newspaper.
Regardless, he said, Pakistan was in a position where it can play a role in trying to eliminate the tensions between Riyadh and Tehran. To another question regarding the South Asian region, he said the Taliban and the Afghan government would very likely soon come to a joint solution.
Imran Khan has been seeking alternatives to the tough conditions the IMF is likely to impose for loans.
Prime Minister Imran Khan has blamed the previous government’s policies for the ballooning current account deficit.
This marks Khan’s second visit to Saudi Arabia in just over a month, but he has not succeeded in securing significant financial assistance to stave off a looming balance of payments crisis. He could not pass up the invitation to meet Saudi leaders again, he told the MEE.
Noting the presence of Umar and Dawood, a statement from Khan’s office on Monday said the visit would “give a chance to connect with those people who are interested in investing in Pakistan”.
Islamabad has already asked the IMF to open negotiations for the country’s second potential bailout in five years while Khan, who took office in July, seeks alternatives to the tough conditions the international financial body is likely to impose for loans, limiting his vision of an Islamic welfare state.
The State Bank of Pakistan’s (SBP) foreign reserves dropped this month to $8.1 billion, a four-year low and barely enough to cover sovereign debt payments due through the end of the year. The current account deficit has swelled to about $18 billion.
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