Islamabad, March 26, 2025: Prime Minister Shehbaz Sharif on Wednesday hailed the successful conclusion of a staff-level agreement with the International Monetary Fund (IMF) for a new $1.3 billion financial arrangement. He commended the government’s economic team for their relentless efforts in securing the deal.
Chairing a Cabinet Committee meeting, the prime minister praised the collective efforts of the Deputy Prime Minister, Finance Minister, Planning Minister, Commerce Minister, Economic Affairs Minister, FBR Chairman, and other key officials who played a role in negotiations.
Despite skepticism from political opponents, PM Shehbaz Sharif asserted that the deal was achieved without imposing any additional taxes, disproving claims that a mini-budget would be required.
The IMF agreement will help increase Pakistan’s foreign reserves to $8.3 billion, which the prime minister termed a significant achievement for economic stability.
Highlighting Pakistan’s strong tax collection performance, he noted that the tax-to-GDP ratio had reached 10.6%, exceeding the IMF’s target of 10.2%, marking the highest achievement in four years. This represents a 26% increase in tax collection so far.
“Pakistan’s tax collection target for 2024-25 was set at Rs 12.9 trillion. The IMF initially suggested lowering it, but I personally insisted on maintaining the original figure. After successful negotiations, we secured a revised target of Rs 12.3 trillion,” he stated.
The government also recovered Rs 34 billion from pending tax cases by fast-tracking their resolution, while tax reforms in the sugar sector alone added Rs 12 billion in revenue, with expectations of Rs 60 billion total collection this year. This model will be expanded to cement, tobacco, and textile sectors.
Unlike previous years, the government has introduced a new digital wallet system for transparent disbursement of financial assistance under the Ramazan Package.
PM Shehbaz Sharif also emphasized that maintaining peace and eradicating terrorism were essential for economic development.
The prime minister hailed the conferment of Nishan-i-Pakistan to Shaheed Zulfikar Ali Bhutto by President Asif Ali Zardari, acknowledging his contributions to Pakistan.
He also expressed condolences on the passing of the mother of Chief of Army Staff General Syed Asim Munir, offering prayers for her soul. The cabinet members observed Fateha for the deceased.
With this new IMF agreement, the government aims to strengthen Pakistan’s economic foundation while ensuring financial stability without additional tax burdens on the people
