ISLAMABAD: Hailing the successful conclusion of a staff-level agreement with the International Monetary Fund (IMF) for a new $1.3 billion arrangement, Prime Minister Shehbaz Sharif emphasised the need to eliminate debt and pave the way for sustainable economic growth.

Addressing the federal cabinet meeting, the premier acknowledged that achieving economic stability is a long and challenging journey but expressed confidence that Pakistan will progress through relentless hard work and dedication.

The prime minister also commended the collective efforts of the deputy prime minister, finance minister, planning minister, commerce minister, economic affairs minister, FBR chairman and other key members of the economic team for their diligent work in securing the IMF agreement.

He reflected on the skepticism from opponents, who had predicted that a mini-budget would be necessary to secure the deal. However, the premier asserted that the agreement was achieved without the need for additional taxation measures, proving the government's resolve and planning.

Shehbaz also acknowledged the hardships faced by the common people who bore the burden of the price hike during the process of achieving economic stability. Besides, he paid tribute to the salaried persons who contributed a major portion in tax collection.

The government will receive $1.3 billion from the IMF, which will bolster Pakistan's foreign reserves to $8.3 billion, the prime minister said, terming it a big achievement to stabilise the county's economy.

He also highlighted the contributions of all the provincial governments and their relevant chief ministers in supporting the federal government in securing the IMF agreement.

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", he added. "Pakistan's tax collection target for the year 2024-25 was set at Rs12.9 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 Rs12.1 trillion, was adjusted to Rs12.3 trillion," he added.

PM Shehbaz 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 the process of hiring of international corporate lawyers was underway.

Due to the government's reforms in the sugar sector, the prime minister said Rs12 billion more in taxes were collected this year as compared to last year and hoped that Rs60 billion in total will be collected this year. "This model will be replicated in cement, tobacco and textile sectors soon," he added.

Regarding the Ramadan Package, the prime minister emphasised that unlike in the past, the government had introduced a new digital wallet system to disburse amounts to the deserving families in a transparent way.

PM Shehbaz emphasised 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.

Published in The Daily National Courier, March, 27 2025

Like Business on Facebook, follow @DailyNCourier on Twitter to stay informed and join in the conversation.