Prime Minister Shehbaz Sharif chaired a high-level federal cabinet meeting on Wednesday to assess Pakistan’s evolving political, economic, and security landscape, particularly in light of regional tensions and upcoming budgetary decisions.
Amid rising concerns over the impact of the Iran-Israel conflict, the cabinet received a detailed briefing on regional security. Prime Minister Shehbaz condemned Israel’s recent attack on Iran, describing it as an “open aggression against a brotherly nation” and a direct threat to both regional and global peace.
“The humanitarian crisis in Gaza is devastating — over 50,000 lives lost. When will the global conscience respond?” he questioned. The prime minister also confirmed telephonic conversations with the presidents of Iran and Türkiye, during which he conveyed Pakistan’s unwavering support and urged a swift international effort toward a ceasefire.
On the economic front, the premier emphasized the need for a budget that delivers public relief, combats inflation, ensures macroeconomic stability, and promotes investment. He instructed that concrete welfare-oriented initiatives be included in the federal budget.
A key fiscal development approved during the session was the plan to address the mounting circular debt in the energy sector. The government will secure a Rs1,275 billion loan from commercial banks, with repayments of Rs323 billion annually over six years, to resolve long-standing liabilities.
Appreciating the Finance Ministry’s performance, particularly in negotiations with the International Monetary Fund (IMF), Shehbaz Sharif announced that Pakistan’s position to exclude agriculture and fertilizers from new taxes had been accepted. Additionally, he shared that individuals earning between Rs600,000 and Rs1.2 million annually will now pay just 1% in income tax — a significant reduction from the previous 5%.
Key decisions and announcements from the meeting included:
- A 10% salary increase for government employees.
- Allocation of Rs1,000 billion for the Public Sector Development Programme (PSDP).
- Expanded budgetary space to support armed forces’ equipment needs amid ongoing counterterrorism operations.
- Continued dialogue with coalition partners to ensure smooth passage of the federal budget.
While discussing defense priorities, the prime minister stated, “By the grace of Allah, we secured a great victory against India,” highlighting recent national security achievements.
He also praised former foreign minister Bilawal Bhutto-Zardari and Pakistan’s diplomatic representatives for their effective advocacy on global forums.
In closing, Shehbaz Sharif reiterated the government’s accomplishments, asserting: “We pulled Pakistan back from the brink of default and have placed the economy on the path to recovery.”
