ISLAMABAD:Pakistan’s Prime Minister PM Shehbaz Sharif on Wednesday announced the successful staff-level agreement with the International Monetary Fund (IMF) for a $1.3 billion loan, marking a key step toward economic stabilization.
Speaking at a Cabinet Committee meeting, Sharif praised his economic team, including the finance and commerce ministers, for securing the deal without imposing additional taxes—contrary to opposition predictions of a “mini-budget.” The funds will raise Pakistan’s foreign reserves to $8.3 billion.
Sharif acknowledged public hardships during economic reforms but highlighted progress, including a tax-to-GDP ratio of 10.6%—exceeding IMF targets—and a 26% rise in tax collection. He credited provincial leaders for their support in finalizing the agreement.
The government also recovered $34 billion in pending tax cases and introduced digital welfare payments for transparency. Reforms in sectors like sugar boosted revenue, with plans to expand to cement and tobacco.
Also read; IMF reaches staff-level deal with Pakistan to unlock $1.3 billion of new cash
Sharif emphasized peace as vital for economic growth and honored former PM Zulfikar Ali Bhutto with a posthumous Nishan-i-Pakistan award. The cabinet also condoled the death of Army Chief Gen. Asim Munir’s mother.
