ISLAMABAD — Prime Minister Shehbaz Sharif on Thursday reaffirmed his government’s commitment to fast-tracking institutional reforms and sustaining macroeconomic stability, as talks with the International Monetary Fund (IMF) near conclusion on Pakistan’s upcoming fiscal budget.
During a meeting with IMF Regional Director Jihad Azour, PM Shehbaz declared that Pakistan was transitioning from recovery to sustained economic growth. “By the grace of Allah, Pakistan is now moving from economic stability towards sustainable growth,” he stated.
The discussions are part of final negotiations under the IMF’s \$7 billion Extended Fund Facility. Talks began on May 14 and are set to conclude Friday (May 23), with virtual follow-ups expected through the budget’s announcement and parliamentary passage.
Key IMF demands include implementing Agricultural Income Tax across provinces, expanding the tax base through retail sector reforms, and achieving financial devolution. Pakistan has proposed modest relief measures in the budget, including super tax reductions and incentives for real estate and salaried groups—still under IMF review.
The IMF delegation acknowledged the reform progress and reiterated its support for Pakistan’s economic goals.
In a separate meeting with *World Bank Managing Director of Operations Anna Bjerde, PM Shehbaz emphasized efforts to fully utilize World Bank support, expressing hope that the Country Partnership Framework would yield over *\$20 billion in development investment**.
Bjerde praised Pakistan’s recent economic performance and assured continued collaboration to ensure inclusive growth and policy continuity. She also commended Pakistan’s handling of the 2022 flood crisis and reaffirmed the World Bank’s longstanding partnership.
Both engagements signal renewed international confidence in Pakistan’s reform agenda and economic direction.
Story by Khaleeq Kiani
