Prime Minister Shehbaz Sharif on Friday stressed the importance of the country having “strong” security, as he spoke about the budget-making process.

He made the remarks during a federal cabinet meeting that approved the budget, which is now expected to be tabled in the parliament. “Today, we are presenting the third budget of our government,” the premier noted.

“There were definitely a lot of challenges while preparing this budget. I believe that no nation can handle its matters, let alone make progress, if its security is not strong and invincible,” the prime minister stressed.

He added, “We have to build water reservoirs and dams [as well as] work with speed on indigenous energy resources, which include solar panels, wind, and batteries.”

The prime minister mentioned that “measures for tax relief and economic progress” will be proposed in the budget.

Noting that the government had “lengthy discussions” with the International Monetary Fund (IMF) during the budget-making process, PM Shehbaz said he had a 30 to 45-minute-long phone call with its Managing Director Kristalina Georgieva, who hailed Pakistan’s economic progress.

He noted that the PML-N had “very detailed conversations” with its ally PPP, which were “successful”. He also thanked other coalition allies for their “unconditional” support.

The prime minister highlighted that the Centre remained engaged in “comprehensive interaction” with the four provinces over the past one and a half months.

“They were told how the centre needs additional funds,” he said, terming the dialogue with the provinces “very meaningful”.

The PML-N and the PPP had agreed to cut development and other expenditures at all tiers of the federation and jointly create similar, but higher, fiscal space next year for additional “strategic needs”.

As a result, the freeze on allocations for provincial development programmes will continue for a specific period beyond one year, according to Finance Minister Muhammad Aurangzeb.

During his address, PM Shehbaz appreciated PML-N President Nawaz Sharif, calling him his “leader”, and Punjab Chief Minister Maryam Nawaz for “showing a big heart for the pressing needs of the federal government”.

“They said that they stood ready to extend support to the federal government in challenges in defence and water security,” he remarked.

The prime minister then recalled his team had “several” meetings with the Sindh leadership, which also cooperated. He thanked President Asif Ali Zardari and PPP Chairman Bilawal Bhutto-Zardari for their “decision in the best interest of the country”.

PM Shehbaz also thanked Balochistan CM Sarfraz Bugti’s “big-heartedness” and KP CM Sohail Afridi’s “positive sentiments”.

“There can be no grander demonstration of national unity, solidarity, and cohesion than this,” he remarked.

The premier acknowledged that “despite our best efforts”, the government had to impose taxes in the past two budgets due to the “national and IMF requirements so that the economy […] could be stabilised and the avenues for progress could be expanded”.

The prime minister added: “Definitely, the common man had to face many difficulties due to it, and I, on my own and the cabinet’s behalf, would like to thank the 240 million people of Pakistan who tolerated the inflation with patience.”

PM Shehbaz highlighted that inflation had declined to single-digit from 38 per cent in the past two years, before increasing slightly due to the ongoing Middle East conflict. He further highlighted that the policy rate had also dipped to 11pc from 22.5pc during the period, but had to be raised due to the impacts of the US-Iran war.

“Today, our economy is stable, and we should hope that with this third budget, […] the wheel of our economy will pick up pace on the condition that we collectively work hard around the clock and stand ready to fulfil our responsibilities,” he emphasised.

At the outset of his address, PM Shehbaz said he attended the funeral prayers of “martyrs who sacrificed their lives in the line of duty”, which included two Christians.

“It was a heart-wrenching scenario that brought tears to every eye,” he said, recalling his meeting with the families of the martyred personnel.