IMF deal reflects confidence in economic management.
ISLAMABAD
Prominent business leader and former president of the Islamabad Chamber of Commerce Shahid Rasheed Butt on Monday praised Prime Minister Shahbaz Sharif for deciding not to pass the recent surge in global oil prices on to the public, calling the move a timely step to protect households and support economic stability.
He said the decision to absorb the international oil shock demonstrated the government’s commitment to shielding citizens and businesses from the ripple effects of global inflation at a time when energy prices are rising due to tensions in the Middle East. By maintaining fuel price stability, he noted, the government has provided relief to transporters, farmers and manufacturers who depend heavily on petroleum products.
Shahid Rasheed Butt said the policy reflected a “relief over revenue” approach, helping to stabilize transport fares and production costs and preventing an additional inflationary burden on the public. According to Butt, such measures are particularly important for middle- and lower-income households already coping with high living costs.
The business leader also welcomed Pakistan’s staff-level agreement with the International Monetary Fund following the third review of the Extended Fund Facility and the second review of the Resilience and Sustainability Facility. The agreement is expected to unlock about $1.21 billion, taking total disbursements under the programme to roughly $4.5 billion.
Butt said the development showed that international financial institutions recognise Pakistan’s improving fiscal discipline and economic management. He noted that maintaining a primary surplus and strengthening external buffers had played an important role in securing continued support from the IMF.
He also appreciated the government’s diplomatic engagement with global partners during a period of geopolitical uncertainty, saying that balanced foreign policy and economic diplomacy had helped Pakistan navigate external pressures.
Butt further welcomed efforts to strengthen the Benazir Income Support Programme, noting that expanding the programme would provide a stronger safety net for low-income families affected by economic volatility.
He added that the government’s focus on lowering input costs for the manufacturing sector and supporting large-scale industry would help revive economic activity, safeguard jobs and strengthen export potential.
The combination of prudent economic management, social protection measures and proactive diplomacy was helping Pakistan maintain stability despite global economic challenges.
