Prime Minister Shehbaz Sharif on Wednesday celebrated the successful negotiation of a $1.3 billion staff-level agreement with the International Monetary Fund (IMF), describing it as a pivotal step toward economic resilience and growth for Pakistan.
Presiding over a Cabinet Committee meeting in Islamabad, the premier commended the hard work of key government figures, including the deputy prime minister, finance minister, planning minister, commerce minister, economic affairs minister, and senior officials from the Federal Board of Revenue (FBR), for securing the agreement.
“There was speculation about a mini-budget, yet we finalized this agreement without introducing new taxes,” Shehbaz Sharif emphasized.
He acknowledged the financial strain on citizens and expressed appreciation for the contributions of salaried individuals who play a crucial role in tax revenues.
The funding will boost Pakistan’s foreign exchange reserves to $8.3 billion, a development the prime minister labeled as a “significant accomplishment.”
Economic Growth and Tax Reforms
Shehbaz Sharif noted that Pakistan’s tax collection had surpassed IMF projections, reaching a tax-to-GDP ratio of 10.6%, the highest recorded in four years. The country also observed a remarkable 26% year-on-year growth in tax revenue.
Despite IMF suggestions to revise the tax target downward, the government maintained its Rs12.3 trillion target for the fiscal year 2024-25.
Reforms in the sugar industry led to an additional Rs12 billion in tax revenue, and the government now plans to extend similar measures to the cement, tobacco, and textile sectors.
Additionally, a fast-tracked tribunal process resulted in the recovery of Rs34 billion from pending tax cases.
Social Welfare and Security Initiatives
To assist low-income households, Shehbaz Sharif highlighted that this year’s Ramadan relief package was disbursed transparently using a digital wallet system.
The prime minister also reinforced the link between national stability and economic progress, pledging continued efforts to eradicate terrorism and strengthen security nationwide.
He praised the posthumous conferral of the Nishan-i-Pakistan award on Shaheed Zulfikar Ali Bhutto by President Asif Ali Zardari, calling it a well-deserved honor for a “national figure.”
The meeting concluded with expressions of sympathy over the passing of the mother of Chief of Army Staff General Syed Asim Munir, followed by a special prayer (Fateha) in her memory.
Frequently Asked Questions (FAQs)
1. What is the significance of Pakistan’s new IMF agreement?
This $1.3 billion IMF deal enhances economic stability, strengthens foreign reserves, and supports Pakistan’s financial reforms.
2. Will the IMF deal introduce new taxes?
No, the government secured the agreement without imposing additional taxes, contrary to speculation.
3. How will the IMF funding impact Pakistan’s economy?
It will boost foreign exchange reserves, ensuring better financial stability and investor confidence.
4. What measures are being taken to improve tax collection?
The government has introduced reforms in various sectors, streamlined tax processes, and expedited pending cases to enhance revenue.
5. How is the government supporting low-income families?
Through digitalized welfare programs, such as the Ramadan relief package, to ensure transparent financial aid distribution.
