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ISLAMABAD:

Azerbaijan has approved an investment of up to $3 billion in different sectors of Pakistan in a bid to give a boost to the South Asian nation's economy.

At a recent cabinet meeting, Prime Minister Shehbaz Sharif informed the forum that the Central Asian state of Azerbaijan had agreed to sign memoranda of understanding (MoUs) for investment of $2 billion to $3 billion, which would further strengthen Pakistan's economy.

The premier, in his remarks, also told the cabinet that following his recent visit to Saudi Arabia, a delegation left for Riyadh to discuss economic cooperation in various productive sectors of the economy, including solar energy, mines and minerals, and information technology.

He highlighted the growing demand for IT professionals in Saudi Arabia and the Gulf, which Pakistan could provide with minimal effort. The PM directed the Ministry of Information Technology and Telecommunication to give a presentation in that regard, including a comprehensive strategy for producing a highly skilled IT workforce that could meet international standards.

He also underscored the importance of taking swift action for implementing the MoUs inked with Saudi Arabia.

He noted with satisfaction a 250-basis-point reduction in policy rate by the State Bank of Pakistan, which brought down the rate to 15%. He observed that the reduction clearly reflected that the measures taken by the government for economic stability were coming to fruition.

He further stated that the policy rate cut was significant as it would stimulate investment, especially in industrial, commercial, agricultural, export and trading sectors.

Sharif pointed out that in recent months, following a significant decline in inflation, the State Bank repeatedly slashed the policy rate, encouraging investments in productive sectors. This, in turn, led to job creation, that enhanced production and exports.

The PM added that the lower policy rate did not only reduce the government's debt burden by Rs1.3 trillion but also created fiscal space by pushing down the cost of borrowing. He expressed confidence that the economy would further strengthen as a result of the prudent economic and financial policies adopted by the government.

He also spoke about the challenges of tax collection and enforcement mechanism, noting that those who paid taxes were the true patriots and ambassadors of the country. He directed the Federal Board of Revenue (FBR) to accord them the highest respect.

However, he warned that those who evaded taxes despite being obligated to pay would be dealt with sternly, along with FBR officials who facilitated such practices.

Sharif informed the cabinet that he would soon announce a significant "winter package" to provide relief to electricity consumers. He appreciated the hard work of the minister and secretary for power in structuring the package, and also commended the efforts of the minister and secretary for finance.

Lastly, the PM highlighted that the government was already taking and further planning several measures to provide relief to the common man, strengthen the economy and create jobs.

He stated that he would chair a meeting to address challenges related to the International Monetary Fund's (IMF) requirements, particularly the tax receipts and revenues.

He emphasised that while the economic challenges confronting Pakistan were formidable, he had great confidence in the resilience and strength of the nation to overcome them. He assured the cabinet that the nation would prosper, even if it required temporary sacrifices.