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PM SHEHBAZ EMPHASIZES HONORING IMF COMMITMENTS TO ENSURE ECONOMIC STABILITY
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PROFIT
STAFF REPORT
RIME Minister Shehbaz Sharif on Wednesday underscored the importance of adhering to International Monetary Fund (IMF) commitments, affirming that the government cannot prematurely exit the program. He stated that Pakistan would part ways with the IMF only when the country is economically stable and self-reliant. Addressing the business community at the Pakistan Stock Exchange (PSX), the premier highlighted Pakistan’s progress under the $7 billion, three-year IMF aid package agreed upon in July 2024. He noted the nation’s slight improvement in tax-to-GDP ratio, reaching 10.8%, surpassing the IMF target of 10.6%, but emphasized the need for further advancements. He further emphasised the need for investment, beyond meeting tax targets, citing the State Bank of Pakistan’s reduction of interest rates from 22% to 13% as a step toward fostering investment. PM Shehbaz stressed the importance of export-led growth and foreign direct investment (FDI), urging stakeholders to provide actionable strategies to achieve these goals. He also called for a cautious but
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PRIME MINISTER CALLS FOR EXPORT-LED GROWTH AND STRONGER PUBLIC-PRIVATE COLLABORATION
bold approach to economic expansion, emphasizing the need to avoid the boom-bust cycles that have plagued the country in the past. The prime minister highlighted the transparency in ongoing privatization efforts, using the example of Pakistan International Airlines (PIA) and the nearly concluded process for Islamabad Airport. He invited critics to propose alternatives to Pakistan’s growth strategy, emphasizing that sustainable growth is the only viable path forward. During his day-visit to Karachi, PM Shehbaz also inaugurated the Federal Board of Revenue (FBR)’s Faceless Customs Assessment System at Karachi Port Trust, aimed at improving transparency in customs processes. Additionally, he attended the launch of the Aga Khan University Manual of Clinical Practice Guidelines. The premier’s visit coincided with a sharp decline in the KSE-100 index, which dropped by 1,904.23 points (1.64%) to close at 114,148.45. Despite the setback, the prime minister expressed optimism about the country’s economic future and reaffirmed the government’s commitment to long-term stability.
‘I would like interest rate to be further reduced to 6%’ PROFIT
STAFF REPORT
Prime Minister Shehbaz Sharif on Tuesday emphasized the need for further reductions in Pakistan’s policy rate, stating that it could be slashed by an additional 8 percentage points despite the recent cut to 13%. “I would like the interest rate to be further reduced to 6%,” he said while addressing a ceremony at the Pakistan Stock Exchange (PSX). The prime minister highlighted the government’s focus on transforming macroeconomic stability into sustained economic growth. He announced plans to engage financial experts from Karachi and other cities to create a unified strategy for achieving the country’s economic targets. Shehbaz called for actionable proposals to drive export-led growth and capitalize on Pakistan’s natural resources. “Pakistan’s economy is back on its feet,” he said, while emphassing the
need for future expansion. He added that the country is moving in the right direction despite ongoing challenges. On the privatisation of state-owned entities, the premier assured a fully transparent process, citing the example of the ongoing privatisation of Pakistan International Airlines (PIA) and Islamabad Airport. Reiterating the government’s commitment to fulfilling International Monetary Fund (IMF) conditions, the prime minister expressed hope that Pakistan would eventually outgrow its reliance on the global lender. “There will come a time when we can say goodbye to the IMF,” he stated. During his visit to Karachi, Shehbaz stressed the vital role of the private sector in economic growth and called for increasing tax revenues to meet national targets. He lauded Karachi as the hub of Pakistan’s economy, symbolizing the country’s resurgence.
Federal ministries, divisions fall short on RTI act compliance: FAFEN ISLAMABAD
STAFF REPORT
The Free and Fair Election Network (FAFEN) has revealed that most federal ministries and their divisions are not meeting the proactive disclosure requirements mandated by the Right of
Access to Information Act (RTI), 2017. This shortfall, FAFEN warned, fosters the spread of misinformation and disinformation. It highlighted that a lack of timely and authentic information on public bodies and their functions could inadvertently fuel such issues, particularly on social media, undermining the
credibility of government institutions. FAFEN stressed that proactive information disclosure via technology must be prioritized instead of relying exclusively on legislative and regulatory actions to curb misinformation, which could be misused. Such measures, it stated, could counter misinfor-
mation effectively while improving transparency and public trust. According to FAFEN’s evaluation of the websites of 40 divisions across 33 ministries, none fully complied with the RTI Act’s requirements for online information disclosure as outlined under Article 19-A of the Constitution.
IMF rejects Pakistan’s proposal to cut sales tax on electricity bills Decision underscores the lender’s firm stance on maintaining fiscal discipline under current loan programme PROFIT
STAFF REPOERT
The International Monetary Fund (IMF) has turned down a formal request by Pakistan’s Ministry of Energy to reduce sales tax on electricity bills, citing commitments under the current loan programme, according to Express News. The decision deals a blow to government efforts aimed at easing the financial strain on consumers. The Ministry of Energy had sought IMF approval for a reduction in sales tax rates, arguing it would provide much-needed relief to electricity consumers. However, IMF officials maintained that granting exemptions or reductions on new taxes would jeopardize Pakistan’s ability to meet its tax collection targets. Currently, an 18% Goods and Services Tax (GST) is imposed twice on electricity bill, once on the total bill amount and again on fuel cost adjustments. The IMF insists that these taxes remain intact to ensure compliance with fiscal targets under the loan agreement. In a separate move to align with IMF conditions, the federal government has agreed to impose a levy on captive power plants. The levy will be implemented gradually to mitigate a significant reduction in gas supply to these facilities. The report suggests that the IMF has shown flexibility on gas cuts to captive power plants but emphasized that the levy must be introduced before the release of the next funding tranche. This development underscores the government’s challenges in balancing economic reforms with public relief amidst mounting pressure from international creditors.