PM Shehbaz says integration of policies crucial for economic progress

ISLAMABAD: Prime Minister (PM) Muhammad Shehbaz Sharif on Friday said that aligning financial, revenue, and production strategies is crucial for the nation’s economic advancement.

He made these remarks in meeting with Professor Stefan Dercon, a British economist who called on him in Islamabad. PM Shehbaz said that maintaining a proper equilibrium across all policies is vital for fostering business growth.

He said that in the past eras the goods of Pakistan were in demand all across the world and Pakistan was considered a goods exporting country.

“We want to bring Pakistan to that position again,” he remarked.

PM Shehbaz said that reforms in the economy were needed to attain this position so that the system could again move towards higher exports.

Stefan Dercon appreciated the right direction of the government policies and reforms.

He commended the tariff rationalization policies of the government while mentioning the positive trends of the foreign investors regarding Pakistan.

Minister for Finance Muhammad Aurangzeb, Minister for Planning and Development Ahsan Iqbal, Minister for Economic Affairs Ahad Khan Cheema, Minister for Power Awais Khan Leghari, Minister for Petroleum Ali Pervaiz Malik and high level officials of the relevant departments attended the meeting.

Earlier, the World Bank (WB) has released a report on Pakistan’s economy, stating that the country’s economy continues to stabilise and is expected to grow by 2.7 percent in the current fiscal (2024-25).

According to the report, the interest rate has also been reduced due to decline in inflation.

“The confidence of global investors in Pakistan’s economy has been restored, with a projected economic growth rate of 2.7 percent for the current fiscal year, up from 2.5percent in the previous fiscal year,” the WB’s report read.

Pakistan’s growth rate is expected to be 3.1 percent in the next fiscal year, while 3.4 percent in 2027, according to the WB’s report.

The World Bank; however, warned that Pakistan’s economy cannot afford delays in structural reforms. The report also identified key challenges for Pakistan’s economy including the increasing debt burden, uncertain global trade conditions, and the impacts of climate change.