• He meets the IMF delegation, says the country on the road to economic progress
• The government seeks relief measures in the budget; Fund review proposals
Islamabad: In the middle of one week’s conversations with the International Monetary Fund (IMF) about the budget of the next fiscal year, Prime Minister Shehbaz Sharif reaffirmed on Thursday Pakistan’s commitment to the rapid institutional reforms and maintain macroeconomic stability.
During a meeting with an IMF delegation led by the regional director for the Middle East and South Asia, Jihad Azour, the prime minister said that the country was now firmly on the path of economic development after a period of recovery and stability.
“By the grace of Allah, Pakistan is now going from economic stability towards sustainable growth,” said Prime Minister Shehbaz in an official statement.
He said that the main priority of the government was to maintain macroeconomic gains and accelerate comprehensive institutional reforms, crucial for long -term resilience.
The high -level meeting took place in the last section of negotiations between a mission of the IMF personnel and the Pakistan economic team to finish next year’s budget online with the commitments assumed as part of the installation of extended funds of $ 7 billion. The IMF mission has been in formal commitments with the authorities since May 14 and is scheduled to conclude the visit on Friday (May 23).
The fund wants the initial achievements under the program to move to the next phase without compromising the objectives of the program. The center of that phase includes an effective implementation of the Agricultural Income Tax in all provinces, tangible recoveries of the retail sector together with the expansion of the fiscal network, the financial return and a greater contribution of the provinces for national security.
It is likely that the commitments continue virtually until the announcement of federal and provincial budgets and their approval by the Parliament to ensure that there are no failures of the agreed budget propositions.
The sources said that Pakistan has proposed modest relief measures in the next budget, including a slight reduction in super taxes, incentives for the real estate sector and relief for the wage class.
However, the IMF has not yet reached a conclusion and is still examining the viability of such measures in the context of the income objective and the expenses and possible recoveries of the cases of litigation.
During the meeting, also attended by Ministers of Finance, Planning and Economic Affairs, in addition to the Secretary of Finance and the President of FBR, the discussions focused on the implementation and progress of the ongoing IMF loan program. Both parties expressed satisfaction on the economic reforms made by the Government and its accumulated positive results, according to the official declaration.
The IMF delegation recognized the progress made by virtue of the reform agenda and assured the Prime Minister of the continuous support of the Fund in the country’s efforts for economic stability and inclusive growth, added the statement.
PM knows the WB team
Separately, the Prime Minister also met Thursday with a World Bank delegation led by the Managing Director of Operations Anna Bjerde and assured him of the firm implementation of the economic reform program necessary to build solid and sustainable growth. He told the delegation that the Government was taking practical measures to achieve the maximum benefits of the World Bank development investment.
I hoped that the World Bank Association Framework would bring more than $ 20 billion in investment in development to Pakistan and appreciate World Bank assistance to victims of floods of 2022 in Pakistan who had affected millions of people, destroying livelihoods and properties.
Mrs. Bjerde said the World Bank valued its historical association with the Pakistan government for the development and prosperity of its people. He also expressed his gratitude to Prime Minister Shehbaz for his effective role in strengthening the association and implementing the countries association program.
He also appreciated the recent exemplary economic performance and Pakistan’s stability, said that through his positive actions for macroeconomic stability, Pakistan had achieved the impossible and the bank expected continuous cooperation to achieve the positive results of the country’s association and elevate Pakistani people for the continuity of politics for sustainable and inclusive growth was necessary.
Posted in Dawn, May 23, 2025
