PM Shehbaz sees room for more reduction in policy rate

KARACHI: Prime Minister (PM) Shehbaz Sharif said that the policy rate might be reduced by an additional 8 percentage points, despite having already been decreased to 13 percent.

Addressing a ceremony at Pakistan Stock Exchange (PSX), the prime minister said that, “The policy rate has been reduced to 13%, and there is still room for an 8-point reduction. I would like the interest rate to be further reduced to 6% Prime Minister.”

He said that the main goal of the government is to convert macroeconomic stability into economic growth, adding that he will be sitting with the financial experts of Karachi and other cities to move Pakistan forward with unity of thought and action, and achieve economic targets.

PM Shehbaz expressed his anticipation of receiving proposals to implement an export-led growth agenda and exploit the full potential of natural resources.

Speaking on process for privatising state-owned entities, the prime minister said that process will be taken forward in an entirely transparent manner.

He said that the economy is getting stabilised the path to expansion has formally started. PM Shehbaz said that Pakistan’s economy is back on its feet and emphasized the necessity of future expansion. “If everything were perfect, we would be living in a fool’s paradise,” the prime minister declared.

The prime minister remarked that the country had achieved economic stability, and while there are still challenges, Pakistan is heading in the right direction.

He assured that the country’s commitment to the International Monetary Fund (IMF) would be fulfilled and added that that there would come a time when Pakistan would say goodbye to the IMF.

He also noted the tax targets for the next six months, which were set clearly and would be met through diligent efforts.

The premier, who is in Karachi for a day, highlighted the significance of economic progress in the country and expressed his happiness at seeing the stock market for the first time.

He said that Karachi is the hub Pakistan’s economy, adding that the city’s once-dimmed lights have now returned, signifying the country’s economic resurgence.

The prime minister called on experienced economists to guide the country’s financial recovery and sought actionable recommendations for further improvements.

He stressed the need for the private sector to play a larger role in the economy’s growth, with an emphasis on the importance of increasing tax revenues.

Earlier in the day, the prime minister was received by Sindh Governor Kamran Tessori and Sindh Chief Minister Murad Ali Shah upon his arrival at Faisal Air Base in Karachi.

PM Shehbaz will also inaugurate the new faceless customs assessment system aimed at improving the efficiency and transparency of the customs clearance process.