ISLAMABAD: In a significant development, Prime Minister Shehbaz Sharif announced that Pakistan has successfully reached a staff-level agreement with the International Monetary Fund (IMF), paving the way for a crucial loan and a $1.3 billion climate fund. Addressing a federal cabinet meeting, the premier credited Deputy PM Ishaq Dar, the finance minister, and other officials for their role in finalizing the agreement.
The prime minister also extended gratitude to the IMF's Managing Director and highlighted the crucial role played by Army Chief Gen Asim Munir in securing the deal. Provincial cooperation was instrumental in the process, he noted. Shehbaz Sharif dismissed opposition claims, asserting that despite terrorism and inflationary pressures, the agreement was a testament to the government's commitment.
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. An additional Rs12 billion had been collected compared to the previous year, with further reforms underway, including the integration of corporate lawyers and professional chartered accountants into the system.
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 is essential, Shehbaz Sharif stressed, stating that Pakistan must reduce its reliance on loans and achieve self-sufficiency.
Linking economic stability with security, the premier reaffirmed the government's resolve to combat terrorism. He lauded the sacrifices of security forces, emphasizing that national development depends on maintaining peace. The Utility Stores Corporation, once one of the most corrupt institutions, is being reformed with the introduction of a digital wallet system for Ramazan relief package, ensuring transparency in distributing subsidies.
