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.

During the meeting, the Prime Minister lauded Chief of Army Staff Field Marshal Asim Munir for his powerful address to the Pakistani diaspora during his ongoing recent visit to the United States. The PM paid tribute to the field marshal for his unwavering commitment to defending Pakistan’s borders and safeguarding national interests.

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.

The cabinet approved Pakistan’s largest-ever financial scheme aimed at eliminating the circular debt in the power sector. The scheme is designed to eliminate circular debt amounting to Rs1,275 billion over the next six years without imposing any additional fiscal burden on the national budget.

Under this plan, Rs683 billion will be refinanced by the Power Holding Company, and outstanding payments to Independent Power Producers (IPPs) will also be settled. The PM termed it a “major milestone for Pakistan’s economy and a crucial step toward a stable future”.

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. The cabinet extended special appreciation to the economic team for presenting a people-friendly federal budget for the upcoming fiscal year.

“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 Shehbaz Sharif also commended Federal Minister for Religious Affairs Sardar Muhammad Yousaf for the exemplary arrangements made during this year’s Hajj pilgrimage, ensuring smooth facilitation for pilgrims.

Other key approvals

The cabinet approved the appointment of Kamaluddin Tipu as chairperson of the Commission for the Protection of Journalists and Media Professionals, based on the recommendation of the Ministry of Human Rights.
It also approved granting an exemption to the National Power Parks Management Company Limited under Section 21 of the Pakistan Public Procurement Regulatory Authority Ordinance 2002. This exemption pertains to the procurement of services related to the acquisition of the Roush Power Plant.

The cabinet ratified decisions made by the Cabinet Committee on Legislative Cases in its meeting held on May 21.

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.