Good news for inflation-hit Pakistanis as PM promises relief package

Prime Minister Shehbaz Sharif has announced that the government will soon introduce a major relief package aimed at reducing inflation and easing the financial burden on the public, reported 24NewsHD TV channel.

Speaking during a federal cabinet meeting in Islamabad on Wednesday, the prime minister assured citizens that the government is actively working on measures to control rising prices, and people will soon witness the benefits of inflation reduction.

During the meeting, PM Shehbaz congratulated his economic team on successfully securing a staff-level agreement with the International Monetary Fund (IMF). He stated that the IMF deal is a reflection of Pakistan’s improving economic stability and commended his team’s dedication and hard work.

Shehbaz Sharif said the staff-level agreement with the International Monetary Fund (IMF) marks a significant milestone in further stabilizing Pakistan's economy.

The prime minister highlighted that the IMF program includes the Resilience and Sustainability Facility worth 1.3 billion dollars, alongside the seven billion dollars' Extended Fund Facility, bringing the total to 8.3 billion dollars.

The Prime Minister praised the cabinet members and government officials for their commendable efforts in achieving 26 percent increase in the tax collection.

He acknowledged that reaching an agreement with the IMF is undoubtedly a remarkable accomplishment and a testament to the dedication of the government's team. He, however, emphasized that it is a loan, and there remains a long journey ahead to eliminate debt and achieve self-reliance for Pakistan.

Shehbaz Sharif underscored that peace and the eradication of terrorism are essential prerequisites for the country's development and progress.

He noted the inseparable link between peace and development and lauded the sacrifices rendered by security forces, law enforcement agencies, and the people of Pakistan in combating terrorism. He stressed the importance of boosting the morale of the security forces.

Talking about the Ramadan Package, the Prime Minister shared that 60 percent of the allocated 20 billion rupees has been disbursed through a transparent digital wallet system.

He also expressed appreciation for the posthumous conferment of the highest civilian award, Nishan-e-Pakistan, on former Prime Minister Zulfikar Ali Bhutto, in recognition of his contributions and services to the nation.

Besides, the Federal Cabinet offered fateha for the departed soul of the mother of Army Chief General Syed Asim Munir.

Condolences on army chief’s mother's passing

Earlier, the federal cabinet expressed deep condolences on the passing of the mother of Chief of Army Staff (COAS) General Asim Munir. The members prayed for the departed soul and extended their sympathies to the bereaved family.

Pakistan secure IMF loan

It is pertinent to mention here that today, the International Monetary Fund (IMF) has said that it has reached agreement with Pakistan on a new $1.3 billion loan programme under the Resilience and Sustainability Facility (RSF) and reviewed an existing bailout that would, if approved, unlock an additional $1 billion.

The new 28-month deal would support Pakistan's efforts to mitigate and adapt to climate change, the International Monetary Fund said in a statement announcing its decision. Both the new programme and the loan review require approval from the Fund's executive board, which is largely a rubber-stamping exercise.

Pakistan came to the brink of default in 2023, as a political crisis compounded an economic downturn and drove the nation's debt burden to terminal levels. It was saved by a $7 billion bailout from the IMF and has enjoyed a degree of recovery, with inflation easing and foreign exchange reserves increasing.

But the deal—Pakistan's 24th since 1958—came with stern conditions that the country improve income tax revenue and cut popular power subsidies, cushioning the costs of the inefficient sector.

Reporter: Awais Kiyani