Pakistan's economy set to take off, says PM Shehbaz

ISLAMABAD: Prime Minister of Pakistan Shehbaz Sharif on Saturday said that the country’s economy was set to take off following a year of dedicated efforts by the government’s economic team to restore stability.

He highlighted that the financial sector had overcome significant challenges and was now on a path to sustained recovery and progress.

“Pakistan’s journey from darkness to light in a year is the result of a collective effort,” the prime minister said while addressing an event held here to celebrate Youm-e-Tameer-o-Taraqqi.

He noted that the government successfully engaged with the International Monetary Fund (IMF) to secure a $7 billion, three-year program in September last year, which prevented the country from defaulting.

Although the nation faced challenges due to the IMF’s tough conditions, he emphasized that the economy had now stabilized and was ready to move toward sustained progress and development.

He said the salaried class had to suffer the most due to the IMF programme as it was now collectively paying Rs 300 billion taxes. He also paid special tribute to the salaried class for contributing such high taxes.

The prime minister stated that the inflation rate had been reduced from 40 percent to as low as 2.4 percent in January 2025, leading to a decline in the policy rate.

He urged the business community to support the government’s efforts to stabilize the economy, emphasizing that their involvement was crucial.

He assured that the government would fully engage the business community in the policymaking process, as economic growth could not be achieved without consulting the private sector.

He emphasized that the government was actively working to curb smuggling across the borders. “By legally exporting sugar to Afghanistan, the government secured $211 million in foreign exchange,” the prime minister said, adding that this valuable revenue would have otherwise ended up in the hands of smugglers.

He acknowledged the dedicated and sincere efforts of the Pakistan Army and law enforcement agencies in helping to curb smuggling activities across the country.

Regarding the government’s privatization policy, the prime minister stated, “We are now moving towards a massive privatization process, as the government has no role in business activities.”

The prime minister said terrorism had almost been eliminated from the country in 2018, however, due to bad policies of the subsequent government, the menace had resurfaced in the country.

“Without uprooting terrorism, the country could not attain the targets of growth and development,” he added.

The country, he said needed peace, stability, unity, prosperity and economic growth for which people belonging to all segments of the society would have to work together.

The prime minister said he wanted to leave behind a legacy that set the country on the path of sustainable development.

He also expressed confidence that the government’s recently launched “Uraan Pakistan” programme would become successful and achieve all its set targets.

Finance Minister Muhammad Aurangzeb on the occasion stated that the incumbent government’s prudent policies had successfully reduced the inflation rate from a steep 40% to 2.4%. Additionally, the policy rate was lowered to 12%, easing the government’s debt servicing burden.

He emphasized that for the first time in the country’s history, the government was rigorously implementing structural reforms, right sizing and pension reforms.

In his welcome address, Planning Minister Professor Ahsan Iqbal said Pakistan’s economy lagged behind in the region due to lack of consistency and continuity of policies.

He expressed his confidence that under Uraan Pakistan programme, the country would achieve the export target of $100 billion in five years.

He said to achieve this target, the export-led industry must have to work round the clock. He also proposed to exempt the export-led industry from national holidays.

Information Minister Attaullah Tarar said the prime minister sacrificed his politics for the sake of the country. He said the business community always contributed and supported the government in the development journey of the country.

President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Atif Ikram Sheikh also spoke on the occasion.