Prime Minister Shehbaz Sharif Announces Pakistan's Economic Acceleration at Davos Forum
Prime Minister Shehbaz Sharif declared on Wednesday that Pakistan is poised for rapid economic takeoff across multiple key sectors, including agriculture, industry, mining, Artificial Intelligence, and Information Technology. He made these remarks while addressing the Pakistan Breakfast event in Davos, held alongside the prestigious World Economic Forum annual meeting.
Macroeconomic Indicators Show Significant Improvement
Highlighting the government's persistent efforts, Prime Minister Sharif presented encouraging macroeconomic data. He noted that the inflation rate has dramatically decreased from 30 percent to 5.5 percent, while the policy rate has been reduced from a steep 22.5 percent to 10.5 percent. Additionally, IT exports are demonstrating substantial progress, reflecting the country's growing technological capabilities.
Structural reforms in revenue collection have been implemented to promote export-led growth. The tax collection to GDP ratio has improved to 10.5 percent today, up from nine percent just a few years ago. Agricultural exports are also on an upward trajectory, contributing to the overall economic momentum.
Strategic Agreements and Sectoral Advancements
Prime Minister Sharif revealed that Pakistan has secured agreements with both American and Chinese companies, paving the way for enhanced cooperation. The government has decided to move forward at lightning speed in diverse areas, including cryptocurrency, Artificial Intelligence, and Information Technology. To boost IT exports, comprehensive facilitation measures are being extended, encompassing training and certification programs.
In the realm of natural resources, Pakistan is aggressively exploiting its infinite natural resources in northern and western regions through partnerships with international firms. There is great hope for expanded cooperation in mines and minerals, counter-terrorism, IT, and AI with global partners.
Privatization and Economic Reforms as Cornerstones
The government is actively encouraging private sector participation and has recently completed the transparent privatization of Pakistan International Airlines. Future plans include outsourcing airports, privatizing power distribution companies, and transmission lines. To curb economic bleeding, several state-owned entities, such as the Public Works Department and utility stores, have been shuttered, saving billions of rupees despite resistance from vested interests.
Prime Minister Sharif emphasized that privatization remains a cornerstone of his economic agenda, stating that without these measures, the economy cannot achieve sound footing. The International Monetary Fund has recognized Pakistan's adherence to its stringent program as a role model for other developing nations.
International Engagements and Global Partnerships
On the international stage, Prime Minister Sharif highlighted Pakistan's strong economic connections with China and revitalized relations with the United States, particularly in mining, counterterrorism, and technology sectors. He participated in the 56th Annual Meeting of the World Economic Forum, engaging in high-level activities to project Pakistan's economic outlook and strengthen global partnerships.
During the forum, he attended an informal meeting of global leaders focused on The Importance of Dialogue in a Divided Global Landscape, discussing cooperation, reducing polarization, and addressing shared challenges. He also met with IMF Managing Director Kristalina Georgieva, apprising her of Pakistan's improving macroeconomic indicators, stabilization efforts, and progress on structural reforms.
The IMF managing director acknowledged Pakistan's reform efforts and stressed the importance of maintaining momentum for long-term economic resilience. Additionally, Prime Minister Sharif met with Palestinian Prime Minister Mohammad Mustafa, who expressed gratitude for Pakistan's consistent and principled support to the Palestinian people.
