Prime Minister Shehbaz Sharif on Wednesday praised the successful staff-level agreement with the International Monetary Fund (IMF), securing $1.3 billion in funding. He called the deal a significant step toward Pakistan’s economic stability. The agreement is set to raise Pakistan’s foreign reserves to $8.3 billion, which the prime minister described as a “big achievement.”
During a Cabinet Committee meeting in Islamabad, Shehbaz Sharif thanked key government officials, including the finance, planning, and commerce ministers, for their efforts. He pointed out that despite skepticism, the government managed to secure the deal without imposing new taxes. The prime minister also acknowledged the public’s role in supporting tax collection during this challenging phase
The agreement comes as Pakistan’s tax collection exceeded IMF expectations, reaching a 10.6% tax-to-GDP ratio, the highest in four years. The government also resisted IMF suggestions to lower the tax target, maintaining Rs12.3 trillion for FY2024-25. Notably, reforms in the sugar sector helped add Rs12 billion to the tax collection.
Shehbaz Sharif also highlighted Pakistan’s commitment to supporting low-income families through a digital wallet system for this year’s Ramadan package. He reiterated the government’s resolve to eliminate terrorism and ensure peace for sustained economic progress.