PM Shehbaz lauds progress as Pakistan finalizes IMF staff-level pact

ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday praised the government’s economic team for their tireless efforts in securing a staff-level agreement with the International Monetary Fund (IMF) for a new US$1.3 billion arrangement.

Chairing the Cabinet Committee meeting, the prime minister praised the Deputy Prime Minister, Finance Minister, Planning Minister, Commerce Minister, Economic Affairs Minister, FBR Chairman, and other key economic team members for their diligent efforts in securing the IMF agreement.

The prime minister addressed the skepticism from opponents who had predicted the need for a mini-budget to secure the deal. He asserted that the government achieved the agreement without imposing additional taxation measures, demonstrating its resolve and strategic planning.

The prime minister recognized the hardships that the common people endured due to rising prices while the government worked toward economic stability. He also honored salaried individuals for contributing a significant share to tax collection.

The prime minister announced that the government will receive $1.3 billion from the IMF, boosting Pakistan’s foreign reserves to $8.3 billion. He called it a major achievement in stabilizing the country’s economy.

He also acknowledged the provincial governments and their chief ministers for supporting the federal government in securing the IMF agreement.

He highlighted the government’s success in surpassing tax collection targets, noting that while the IMF had set a 10.2% tax-to-GDP ratio, the economic team’s strong performance pushed it to 10.6%—the highest in the last four years. “This performance reflects a 26% increase in tax collection so far,” he added.

“Pakistan’s tax collection target for the year 2024-25 was set at Rs 12.9 trillion, and despite the IMF initially suggesting a downward revision of this target, I insisted on maintaining the original figure. Following successful negotiations, the target, which was initially revised down to Rs 12.1 trillion, was adjusted to Rs 12.3 trillion,” the prime minister added.

He emphasized the government’s plan to fast-track tax cases pending in tribunals, worth billions of rupees, and reported that this decision had led to the recovery of Rs 34 billion.

He also noted that the faceless interaction initiative in Karachi was progressing successfully, while the process of hiring international corporate lawyers was underway.

The prime minister stated that government reforms in the sugar sector led to an additional Rs 12 billion in tax collection this year compared to last year. He hoped that total tax collection would reach Rs 60 billion this year. “We will soon replicate this model in the cement, tobacco, and textile sectors,” he added.

Regarding the Ramazan Package, the prime minister emphasized that, unlike in the past, the government had implemented a new digital wallet system to transparently distribute funds to deserving families.

PM Shehbaz Sharif stressed the need to maintain peace and eliminate terrorism as essential for the country’s development. He highlighted the direct link between peace and economic progress.

He praised President Asif Ali Zardari for awarding Nishan-i-Pakistan to Shaheed Zulfikar Ali Bhutto, acknowledging his significant contributions to the nation.

The prime minister also extended condolences on the passing of Chief of Army Staff General Syed Asim Munir’s mother and prayed for her eternal peace. The cabinet offered Fateha for the deceased.