ISLAMABAD, March 26 (Alliance News): Prime Minister Shehbaz Sharif on Wednesday lauded the successful conclusion of a staff-level agreement with the International Monetary Fund (IMF) for a $1.3 billion arrangement, praising the government’s economic team for their relentless efforts.
Chairing a Cabinet Committee meeting, the prime minister commended Deputy Prime Minister, Finance Minister, Planning Minister, Commerce Minister, Economic Affairs Minister, FBR Chairman, and other key officials for securing the deal.
Addressing criticism from opponents who predicted a mini-budget, he emphasized that the agreement was achieved without additional taxation measures, showcasing the government’s strategic planning.
Shehbaz Sharif acknowledged the economic hardships faced by the public, particularly the salaried class, who contributed significantly to tax collection. He highlighted that the IMF agreement would boost Pakistan’s foreign reserves to $8.3 billion, stabilizing the economy.
The premier also praised provincial governments and their chief ministers for supporting the federal government in the negotiations.
He highlighted Pakistan’s tax-to-GDP ratio, which had surpassed the IMF target of 10.2%, reaching 10.6%—the highest in four years, reflecting a 26% increase in tax collection.
He revealed that despite the IMF’s initial recommendation to lower Pakistan’s tax collection target, he personally ensured it remained strong. The government ultimately adjusted its 2024-25 tax target from Rs 12.1 trillion to Rs 12.3 trillion after successful negotiations.
Discussing pending tax cases, he stated that the government had fast-tracked cases worth billions in tribunals, recovering Rs 34 billion.
Additionally, he cited successful reforms in the sugar sector, which led to an additional Rs 12 billion in tax collection this year, with expectations to reach Rs 60 billion. Similar reforms will be introduced in cement, tobacco, and textile sectors.
Regarding the Ramazan Package, the prime minister said the government had implemented a digital wallet system for transparent financial aid distribution to deserving families.
Shehbaz Sharif also reiterated the importance of peace and the fight against terrorism as crucial pillars for Pakistan’s economic stability and progress.
He welcomed the Nishan-i-Pakistan award conferred on Shaheed Zulfikar Ali Bhutto by President Asif Ali Zardari, recognizing Bhutto’s contributions to the nation.
The cabinet also offered Fateha for the late mother of Chief of Army Staff General Syed Asim Munir.
