Positive indicators during last year reflect govt’s prudent economic policies: PM
ISLAMABAD, Mar 26 (APP): Prime Minister Muhammad Shehbaz Sharif on Wednesday said the positive economic indicators during the last one year were a reflection of the positive policies of the government as the country’s economic stability strategy was determined for effective performance and sustainable planning.
The prime minister made these remarks while chairing the federal cabinet meeting held here at the Prime Minister House.
Addressing the participants of the meeting, the Prime Minister expressed satisfaction over the staff-level agreement between Pakistan and the International Monetary Fund (IMF) on the review of the Extended Fund Facility and the agreement on the provision of $1.3 billion funds to support Pakistan’s efforts against climate change.
He said that the review of the first staff-level agreement of $7 billion with the IMF had completed; through these agreements, the IMF had expressed confidence in the Pakistani economy.
He added that the IMF had noted the progress made in restoring macroeconomic stability during the last 18 months, the improvement in the financial situation and inflation plummeting to its lowest level since 2015.
The IMF has also appreciated the steps and commitment of the government to reform the economy and improve governance, which was propitious, he added.
Prime Minister Shehbaz praised the performance of Federal Minister for Finance and Revenue Muhammad Aurangzeb and the government’s economic team regarding these agreements.
He said that these agreements would help stabilize Pakistan’s economy and put it on the path of long-term recovery. “The government is working on priority basis on important areas such as tax reforms, efficient performance of the energy sector and development of the private sector. Allah Almighty has blessed us with Pakistan in the blessed month of Ramadan, we should work together for the development and prosperity of the country,” Prime Minister Shehbaz Sharif said.
During the meeting, the federal cabinet, on the recommendation of the Power Division, approved the use of the volume of reduction in the prices of petroleum products to reduce the prices of electricity.
It also approved the Central Power Purchasing Agency (CPPA) to sign contracts with power plants running on bagasse as per the revised terms and conditions.
The federal cabinet, on the recommendation of the Ministry of Law and Justice, approved in principle the Whistleblower Protection and Vigilance Commission Act, 2025.
The federal cabinet, on the recommendation of the Revenue Division, approved further amendments to the Income Tax, Sales Tax on Services and Federal Excise Duties within the limits of the Islamabad Capital Territory. These amendments have been made as policy actions in relation to the Resource Mobilization and Utilization Reform Program. Some amendments in this regard have been made in 2023 and 2024.
The federal cabinet has approved the Income Tax (Second Amendment) Bill, 2025 on the recommendation of the Revenue Division regarding the restoration of tax rebate on income of full-time teachers and researchers.
The federal cabinet has ratified the decisions taken in the meeting of the Cabinet Committee on Privatization held on March 11, 2025. It also ratified the decisions taken in the meetings of the Economic Coordination Committee held on March 13, 2025 and March 21, 2025.
The cabinet decided to broaden the scope of consultation on the Solar Net Metering Regulations approved by the ECC and re-submit the recommendations to the Cabinet after taking further feedback from all stakeholders.
