Prime Minister Shehbaz Sharif chaired a high-level federal cabinet meeting on Wednesday, during which the country’s political, economic, and security situation was extensively reviewed.
The meeting came amid growing concerns over the regional impact of the ongoing Iran-Israel conflict and in the backdrop of the government’s efforts to finalize the federal budget.
According to sources, the cabinet was briefed on the latest security developments in the region, with particular attention to the possible implications of the escalating conflict between Iran and Israel. Prime Minister Shehbaz strongly condemned Israel’s recent strike on Iran, calling it an “open attack on a brotherly country” and a threat to regional and global peace.
“The situation in Gaza is extremely troubling — over 50,000 people have been martyred. When will the world’s conscience wake up?” the PM asked during his remarks. He confirmed he had spoken with the presidents of Iran and Türkiye to express Pakistan’s solidarity with their people. “International countries should try to achieve a ceasefire soon.”
The prime minister also stressed the need for the federal budget to focus on public relief, economic stability, inflation control, and investment promotion. He directed that the upcoming budget include significant measures for the welfare of the common people.
In terms of fiscal planning, the cabinet approved a major initiative to eliminate the energy sector’s circular debt. According to sources, a loan of Rs1,275 billion will be secured from commercial banks to reduce the debt burden, with Rs323 billion to be paid annually over the next six years.
During the meeting, PM Sharif praised the Finance Ministry’s efforts, especially in negotiations with the International Monetary Fund (IMF). He announced that the IMF had accepted Pakistan’s stance on not imposing taxes on agriculture and fertilizers.
“Only 1% tax will be levied on those earning between Rs600,000 and Rs1.2 million annually, down from five percent last year,” he added.
Key highlights from the PM’s briefing during the meeting included
- A 10% salary increase for government employees.
- Allocation of Rs1,000 billion for the Public Sector Development Programme (PSDP).
- Increased budgetary space for necessary equipment for armed forces amid continued anti-terrorism operations. “Allah Almighty gave us a great victory against India,” Shehbaz remarked.
- Continued consultations with coalition partners to ensure smooth approval of the federal budget.
Prime Minister Sharif concluded his address by congratulating former foreign minister and PPP Chairman Bilawal Bhutto-Zardari and members of the diplomatic corps for effectively representing Pakistan on international platforms.
“We saved Pakistan from default and revived the economy,” Shehbaz declared, underscoring the government’s recent achievements.
