ISLAMABAD:Prime Minister Shehbaz Sharif announced on Saturday that Pakistan’s economy is poised for growth following a year of dedicated efforts to restore stability. He emphasized that the financial sector had overcome major hurdles and was now progressing toward long-term recovery and development.
Speaking at an event marking Youm-e-Tameer-o-Taraqqi, the prime minister highlighted the collective effort behind the country’s economic turnaround. He credited the successful engagement with the International Monetary Fund (IMF) in securing a $7 billion, three-year program in September of the previous year, which played a crucial role in averting an economic crisis.
Acknowledging the challenges posed by the IMF program, Shehbaz noted that the country had endured difficult conditions but had now achieved economic stability, paving the way for sustainable growth. He particularly commended the salaried class, which bears a significant tax burden, collectively contributing Rs300 billion.
He further assured the business community of his commitment to reducing taxes and stated that if circumstances allowed, he would immediately implement a 15% tax cut. However, he stressed that the timing had to be right for such a move.
Shehbaz also pointed out a significant drop in inflation, from 40% to just 2.4% in January 2025, leading to a decrease in the policy rate. He called upon the business sector to actively support the government’s economic initiatives, emphasizing that their participation was essential to achieving economic stability.
The prime minister reiterated his administration’s commitment to curbing smuggling, particularly across the borders. He cited the example of legally exporting sugar to Afghanistan, which generated $211 million in foreign exchange—a sum that could have otherwise been lost to illegal trade. He also praised the Pakistan Army and law enforcement agencies for their efforts in controlling smuggling.
On the topic of privatization, Shehbaz reaffirmed the government’s stance that it should not be involved in business activities. He declared that a large-scale privatization process was underway to enhance efficiency and economic performance.
Turning to national security, the prime minister acknowledged that terrorism had been nearly eradicated by 2018. However, he blamed poor policies in subsequent years for its resurgence. He stressed that eliminating terrorism was essential for achieving economic growth and national development.
Shehbaz called for peace, stability, and unity, urging all segments of society to work together toward prosperity. He also expressed his commitment to leaving behind a legacy of sustainable economic growth and development.
He voiced optimism about the success of the recently launched Uraan Pakistan program, which he believes will fulfill its objectives.
Finance Minister Muhammad Aurangzeb, speaking at the event, noted that the government’s prudent policies had successfully brought inflation down from 40% to 2.4%. He also highlighted the reduction of the policy rate to 12%, easing the government’s debt servicing burden. He emphasized that, for the first time, structural reforms were being implemented effectively, including pension and institutional restructuring.
Planning Minister Professor Ahsan Iqbal pointed out that Pakistan’s economic progress had lagged behind other countries in the region due to inconsistent policies. However, he expressed confidence that the Uraan Pakistan initiative would help achieve an export target of $100 billion within five years. He proposed exempting export-oriented industries from national holidays to maximize productivity.
Information Minister Attaullah Tarar lauded the prime minister for prioritizing the country’s economic revival over political gains. He also acknowledged the business community’s unwavering support in Pakistan’s development journey.
President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, also addressed the gathering, commending the government’s initiatives and emphasizing the need for continued collaboration between policymakers and business leaders.
