Islamabad (Web Desk): Prime Minister Shehbaz Sharif has said that the staff-level agreement with the International Monetary Fund (IMF) marks a significant milestone in further stabilizing Pakistan's economy.
Chairing the Federal Cabinet meeting in Islamabad, the premier hailed the successful conclusion of a staff-level agreement with the IMF for a new $ 1.3 billion arrangement, commending the government economic team for their tireless efforts in securing the deal.
PM Shehbaz addressed the earlier doubts raised by critics, who had anticipated the need for a mini-budget to finalize the deal. However, he emphasized that the government had achieved this agreement without imposing any new taxes, underscoring the effective planning and commitment that guided the process.
Acknowledging the economic challenges faced by ordinary citizens, particularly the rise in prices, he also praised the role of salaried individuals in supporting tax revenue.
“The $1.3 billion arrangement with the IMF will help increase the country’s foreign reserves to $8.3 billion, providing a much-needed boost to the national economy,” the premier noted.
PM Shehbaz also credited the provincial governments and their chief ministers for their vital support in the process, highlighting the collaborative nature of this achievement.
Highlighting the government’s success in surpassing tax collection targets, he said the IMF had aimed for a 10.2% tax-to-GDP ratio, but with strong performance from the economic team, the tax-to-GDP ratio had reached 10.6%, marking the highest achievement in the last four years.
“This performance reflects a 26% increase in tax collection so far”, the prime minister 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 personally 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,” PM Shehbaz said.
He underscored that the government had planned to fast-track the cases relating to taxes pending in the tribunals worth billions of rupees and informed that as a result of this decision, the government had recovered Rs34 billion.
Similarly, he said the faceless interaction in Karachi was successfully ongoing while process of hiring of international corporate lawyers was underway.
"Reforms in the sugar sector were also mentioned as a success, with Rs12 billion more in taxes collected compared to the previous year," PM Shehbaz said, adding that the government hopes to collect Rs60 billion from this sector alone by year’s end, with plans to extend similar reforms to other industries, such as cement, tobacco, and textiles.
In a bid to improve the delivery of aid to families in need, the premier said that the government introduced a new digital wallet system for the Ramadan Package, ensuring that funds are distributed transparently.
PM Shehbaz Sharif emphasized the importance of maintaining peace and eradicating terrorism as key pillars for the country’s development. He underlined that peace was directly linked with economic progress and prosperity.
He also expressed appreciation for the posthumous conferment of the highest civilian award, Nishan-e-Pakistan, on former Prime Minister Zulfikar Ali Bhutto, in recognition of his contributions and services to the nation.
The prime minister also expressed condolences over the passing of the mother of Chief of Army Staff (COAS) General Syed Asim Munir, praying for eternal peace of the departed soul. The cabinet offered Fateha for the deceased.
