PM hails $1.3 billion IMF deal as major economic milestone

Prime Minister Shehbaz Sharif on Wednesday hailed the successful staff-level agreement with the International Monetary Fund (IMF) for a new $1.3 billion arrangement, calling it a major milestone in Pakistan’s path toward economic stability.

Chairing a Cabinet Committee meeting in Islamabad, the prime minister applauded the efforts of the deputy prime minister, finance minister, planning minister, commerce minister, economic affairs minister, FBR chairman, and other senior officials for securing the deal.

“Despite scepticism and predictions of a mini-budget, we secured this agreement without imposing new taxes,” Shehbaz Sharif said.

He also acknowledged the burden placed on the public during this phase, paying tribute to salaried individuals for their key role in tax contributions.

The agreement will bring $1.3 billion in IMF funding, raising Pakistan’s foreign reserves to $8.3 billion, which the prime minister termed a “big achievement.”

Shehbaz Sharif highlighted that tax collection had exceeded IMF expectations, achieving a 10.6% tax-to-GDP ratio, the highest in four years, with a 26% year-on-year increase in tax revenue.

He also outlined how Pakistan retained a Rs12.3 trillion tax target for FY2024-25, after resisting IMF recommendations to lower it.

The prime minister said reforms in the sugar sector led to an additional Rs12 billion in tax collection, with the model soon to be applied to the cement, tobacco, and textile sectors.

He added that Rs34 billion had been recovered from pending tax cases after fast-tracking tribunal processes.

To support low-income families, he noted that the Ramadan package this year used a digital wallet system for transparent disbursement.

Shehbaz also stressed the link between peace and economic progress, vowing to continue efforts to eliminate terrorism and ensure security across the country.

He welcomed the Nishan-i-Pakistan award conferred on Shaheed Zulfikar Ali Bhutto by President Asif Ali Zardari, calling it a fitting tribute to a “national icon.”

The meeting concluded with condolences on the death of the mother of Chief of Army Staff General Syed Asim Munir, and a prayer (Fateha) offered in her memory.