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reviews FBR’s plan PM HIGHLIGHTS KEY ACHIEVEMENTS, ECONOMIC IMF to generate Rs250b PROGRESS AS GOVT MARKS ONE YEAR from retailers, enforce Wednesday, 5 March, 2025 I 4 Ramazan, 1446
SAYS IT WAS MATTER OF SATISFACTION THAT g TELLS CABINET MEMBERS TO WORK HARD TO NOT A SINGLE CASE OF CORRUPTION PROVIDE SUCCOUR TO HAPLESS AND SURFACED IN PAST ONE YEAR FINANCIALLY WEAKER SEGMENTS OF SOCIETY
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ISLAMABAD
STAFF REPORT
RIME Minister Muhammad Shehbaz Sharif on Tuesday lauded the performance of his cabinet members during the past one year and urged them to continue contributing towards economic stability with their untiring efforts as all the economic indicators were showing positive trajectory. Addressing a special meeting of the cabinet members held at the Jinnah Convention Center to review the one-year performance of the government, the prime minister said that during the last one year, it was a matter of satisfaction that not a single case of corruption had surfaced by the opposition. The prime minister said that they should have to work hard to provide succour to hapless and financially weaker segments of society with all kind of assistance and compassion especially in the holy month of Ramazan, adding that the government had rolled out Rs20 billion Ramazan package to benefit 4 million deserving families through digital wallets system.
Each family would get Rs5,000 each, thus the new system would shut doors on all kind of allegations of financial mismanagement which had badly marred the functioning of entities like Utility Stores Corporation, he said, terming the relief initiative as ‘quantum jump which will succeed’. He said that they took the challenge of saving the country from running into default. With hard work, the government
Pakistan ‘well positioned’ for first review of IMF bailout: FinMin Aurangzeb g
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‘THEY ARE HERE. WE WILL HAVE TWO ROUNDS OF TALKS, FIRST TECHNICAL AND THEN POLICY LEVEL,’ SAYS MINISTER PROFIT
REUTERS
Pakistan was “well positioned” for the first review of its $7 billion International Monetary Fund bailout programme as talks with the global lender began on Tuesday, Finance Minister Muhammad Aurangzeb told Reuters. Islamabad secured the $7 billion Extended Fund Facility (EFF) last summer to help claw its way out of an economic crisis. The programme has played a key role in stabilising Pakistan’s economy and the government has said the country is on course for a long-term recovery. “They are here. We will have two rounds of talks, first technical and then policy level,” Finance Minister Muhammad Aurangzeb said. “I think we are well positioned” for the review, he said. The finance ministry released a picture on Tuesday morning showing its officials meeting with IMF representatives. The IMF team usually spends around two weeks reviewing fiscal reforms and policy. A separate IMF team was in Pakistan last week to discuss around $1 billion in climate financing on top of the EFF. The News reported that the IMF review mission and the government would discuss the performance of various sectors of the economy in the first half (July-Dec) period, evaluating any requirement for making adjustments in the macroeconomic and fiscal framework for the whole financial year 2024-25.
succeeded in achieving the economic turnaround and steering the country out of the financial straits. For the first time in country’s history, meeting of the federal cabinet was witnessed by people from different section of society and mediapersons present in the Convention Center besides, it was telecast live by the national TV channels. The prime minister said all the macroeconomic indicators were on the
high scale and asked the members to work hard with dedication and commitment as these were prerequisite for making Pakistan one trillion economy till the year 2035. He also thanked leadership of all the coalition partners in the government including PPP, MQM, BAP, IPP etc, for their support in the most difficult times. “We are the bearers of May 28 achievement and not of May 9,” he said, questioning that a political party who was running a provincial government had written letters to IMF pressing against any agreement with the government. The prime minister highlighting government’s efforts towards economic stability, expressed the confidence that Rs400 billion tax cases pending for adjudication in various courts would be decided expeditiously as the one by Sindh High Court which provided relief to the government with Rs23 billion. He underlined the need of plugging 850 billion rupees losses incurred by the loss-making state owned enterprises terming them as’ bottomless pits’ which needed to be plugged, besides the need to end circular debt in the power sector.
PM Shehbaz visit to Azerbaijan aims to strengthen bilateral trade relations PROFIT
MONITORING DESK
Prime Minister Shehbaz Sharif’s upcoming visit to Azerbaijan is expected to significantly enhance bilateral trade and open doors for economic cooperation in various sectors, say economic experts. With the global economic landscape shifting, they emphasize that this is the perfect time for both countries to strengthen their trade relations. For the fiscal year 2024, the total trade volume between Pakistan and Azerbaijan stands at $5.96 million, with Pakistan’s exports to Azerbaijan valued at $5.93 million and imports from Azerbaijan at just $0.03 million. Dr. Mehmoodul Hassan Khan, an eminent economic strategist and regional expert, stated that the signing of various Memorandums of Understanding (MoUs) and agreements during the visit will promote cooperation in key areas such as trade, energy, tourism, and education. One significant agreement includes a partnership between the State Oil Company of Azerbaijan Republic (SOCAR) and Pakistan’s Frontier Works Organisation (FWO) and Pakistan State Oil (PSO) to collaborate on the Machike-Thalian-Taru Jabba White Oil Pipeline Project. This project holds immense strategic value for both countries, addressing Pakistan’s energy deficits
while providing geopolitical and socio-economic benefits. “Pakistan is in need of a stable energy supply, and these agreements will go a long way in meeting our energy needs, which have long plagued our industries and society. Additionally, MoUs in security, defense, education, and tourism will enhance bilateral trade and solidify mutual business interests,” Khan added. Khan also noted that several Pakistani IT firms, startups, and businesses in the ICT sector have shown growing confidence in investing in Azerbaijan, particularly in the newly liberated areas of Karabakh. This highlights the secure and promising business environment that Azerbaijan offers to foreign investors. Pakistani investors have also established textile units, pharmaceutical companies, and sports businesses in Azerbaijan, further indicating a thriving and investment-friendly atmosphere for entrepreneurs. The prime minister’s focus on economic diplomacy is showing positive results, with recent agreements aimed at increasing bilateral trade to $2 billion. This reflects the growing mutual trust and cooperation between the two nations. Khan pointed out that during Pakistan’s economic hardships, Azerbaijan had provided oil and gas on deferred payments, helping Pakistan manage its cur-
rent account deficits. Furthermore, the construction of the Zangezur Corridor is expected to offer Pakistan a significant advantage in exporting goods to Eastern Europe once completed, further boosting trade relations. Khan emphasized that Azerbaijan’s President Ilham Aliyev’s geo-economic vision has led to remarkable progress in the country’s macro-economy, industrial capacity, human capital development, and renewable energy initiatives. This development provides an excellent opportunity for Pakistan to collaborate with Azerbaijan to achieve greater socio-economic integration. Farooq Muhammad Shaikhani, former president of the Hyderabad Chamber of Small Traders and Small Industry, emphasized that Pakistani businesses can take full advantage of the MoUs signed with Azerbaijan to drive economic growth. However, he also called on Pakistan to focus on utilizing its own natural resources, such as coal, minerals, and renewable energy, to ensure sustainable economic growth and reduce dependency on foreign investments. By strengthening local industries and focusing on indigenous energy solutions, Pakistan can create job opportunities, increase self-sufficiency, and build a resilient economy.
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IMF IS ALSO ASSESSING PAKISTAN’S TAX PENALTY STRUCTURE TO DESIGN A GENERAL ANTI AVOIDANCE RULE FOR IMPROVED COMPLIANCE PROFIT
MONITORING DESK
The International Monetary Fund (IMF) has reviewed the Federal Board of Revenue’s (FBR) plan to expand the tax net for retailers and implement the Compliance Risk Management (CRM) framework as part of efforts to generate Rs250 billion in additional revenue, according to a news report. The measures, discussed during the ongoing IMF review mission in Islamabad, come amid a Rs604 billion revenue shortfall in the first eight months of the fiscal year. The Tajir Doost Scheme is central to the FBR’s drive to bring retailers into the tax system, alongside CRM enforcement at Large Taxpayer Units (LTUs) in Islamabad, Karachi, and Lahore. The FBR has also integrated its data with 145 agencies under documentation laws and is expanding the compliance improvement plan across 36 more cities. To strengthen tax enforcement, the FBR is introducing AI-driven audits, selecting 3-5% of six million tax returns for review, though full implementation will take time. Independent auditors have also been hired. Other measures include digital invoicing, track-andtrace mechanisms, and stricter enforcement to curb tax evasion. The IMF is also assessing Pakistan’s tax penalty structure to design a General Anti-Avoidance Rule (GAAR) for improved compliance. Meanwhile, discussions continue on broader fiscal adjustments for 2024-25 and the framework for the 2025-26 budget, with negotiations potentially extending until the budget’s approval by Parliament if an agreement is not reached at the staff level.
Planning minister chairs meeting on Gwadar Port’s operationalization plan PROFIT APP
Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Tuesday chaired a high-level meeting to finalize the Gwadar Port Operationalization Plan and address key challenges hindering its full functionality. The meeting was co-chaired by Minister for Communications Abdul Aleem Khan and Minister for Maritime Affairs Qaiser Ahmed Sheikh, while Minister for Commerce Jam Kamal participated online, a news release said. The session was attended by the secretaries from relevant ministries, CEO of the Public-Private Partnership Authority (P3A) and other key stakeholders. The primary agenda of the meeting was to review critical issues impeding the operationalization of Gwadar Port, finalize an actionable strategy for its activation, and ensure effective implementation of the plan once approved by the Cabinet. Addressing the meeting, Planning Minister Prof. Ahsan Iqbal emphasized the government’s commitment to making Gwadar a regional trade hub.
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