PM Shehbaz says concerted efforts pave the way for IMF loan, $1.3bn climate fund
Pakistan
Says no mini-budget was introduced despite many challenges
ISLAMABAD (Dunya News) - Prime Minister Shehbaz Sharif said on Wednesday that Pakistan successfully reached the staff-level agreement with the International Monetary Fund (IMF), dismissing opposition claims about a mini-budget.
Addressing a federal cabinet meeting, he said that despite economic challenges, no mini-budget had been introduced.
During the session, cabinet members expressed condolences over the passing of Army Chief Gen Syed Asim Munir’s mother.
The prime minister credited Deputy PM Ishaq Dar, the finance minister, and other officials for their role in finalising the agreement, extending gratitude to the IMF’s Managing Director as well.
He highlighted the crucial role played by Army Chief Gen Asim Munir in securing the deal, noting that provincial cooperation was instrumental in the process.
Shehbaz Sharif dismissed opposition claims, asserting that despite terrorism and inflationary pressures, the agreement was a testament to the government's commitment.
Tax Reforms and Revenue Collection
The premier described the IMF agreement as a major step toward economic stability, underlining the importance of agricultural taxation.
Punjab took the lead in approving agricultural tax reforms, setting a precedent for other provinces. He further noted a 26% increase in tax revenue compared to the previous year, praising the salaried class for their contribution. Legal efforts have also helped recover Rs34 billion in pending tax cases.
Shehbaz Sharif reiterated the government's commitment to digitizing the Federal Board of Revenue (FBR) to streamline tax collection. He revealed that an additional Rs12 billion had been collected compared to the previous year, with further reforms under way, including the integration of corporate lawyers and professional chartered accountants into the system.
Monitoring the Sugar Sector
The prime minister announced stricter oversight of the sugar sector, ensuring transparency in sales tax collection. Efforts to curb tax evasion in the industry have led to a collection of Rs12 billion so far, with a target of Rs60 billion from the sector.
Broadening the Tax Base
He stressed the need for every sector to contribute to the tax system, stating that Pakistan must reduce its reliance on loans and achieve self-sufficiency. He expressed confidence that with sustained efforts, the country would reclaim its lost economic standing.
Security and Development
Linking economic stability with security, the premier reaffirmed the government's resolve to combat terrorism. He lauded the sacrifices of security forces, emphasising that national development depends on maintaining peace.
Reforming Utility Stores
He said the Utility Stores Corporation was one of the most corrupt institutions, citing past financial mismanagement. However, he announced the introduction of a digital wallet system for Ramazan relief package, ensuring transparency in distributing subsidies.
Of the Rs20 billion allocated, 60% of the funds have already been disbursed to deserving recipients.
Recognition for Bhutto
Sharif welcomed President Asif Ali Zardari's move to confer Nishan-e-Pakistan award on former prime minister Zulfikar Ali Bhutto.
