Prime Minister Shehbaz Sharif declared on Wednesday that Pakistan's economy is demonstrating clear signs of recovery, with the nation advancing with renewed confidence as key economic indicators continue to strengthen. Speaking at an event hosted at the Pakistan Pavilion during the sidelines of the 56th Annual Meetings of the World Economic Forum, the prime minister emphasized that Pakistan has achieved macroeconomic stability following difficult yet essential reforms, and is now firmly concentrated on export-led growth and sustainable development.
Key Economic Improvements and Reforms
In his address, Prime Minister Shehbaz highlighted significant economic progress, noting that inflation has sharply decreased from 30 percent to 5.5 percent, while the policy rate has been reduced from 22.5 percent to 10.5 percent. He attributed this improvement to disciplined economic management and a steadfast commitment to reform. The prime minister also pointed out that Pakistan's IT exports have shown reassuring advancement, now standing at approximately $3 billion annually through offshore channels, underscoring the sector's growing potential.
Focus on Export-Led Growth and Tax Reforms
Despite ongoing challenges in exports, Prime Minister Shehbaz asserted that the future path is unambiguous, with Pakistan committed to pursuing export-led growth. He underlined reforms in revenue collection as a key pillar of this strategy, revealing that the government has introduced fundamental changes in the tax system, which is being fully digitized. As a result, the tax-to-GDP ratio has increased to 10.5 percent from 9 percent a few years ago, a development he termed a significant achievement for the nation's fiscal health.
Sectoral Opportunities and Youth Empowerment
Highlighting sectoral opportunities, the prime minister mentioned that agricultural exports performed well in the previous year, and Pakistan is now entering the mining and minerals sector. He disclosed that agreements have been signed with American and Chinese companies to tap into the country's vast untapped resources in regions such as Gilgit-Baltistan, Azad Jammu and Kashmir, Khyber Pakhtunkhwa, and Balochistan. Additionally, Pakistan is rapidly advancing in emerging fields like information technology, artificial intelligence, and cryptocurrency, viewing the large youth population as both a challenge and an opportunity.
To empower the youth, Prime Minister Shehbaz stated that federal and provincial governments are jointly implementing programs focused on vocational and technical training. He cited the role of the National Vocational and Technical Training Commission (NVTTC), noting that its programs undergo third-party audits and international certification, enabling Pakistani youth to secure productive employment in Gulf countries and beyond.
Foreign Relations and Privatization Efforts
On foreign relations, the prime minister noted that Pakistan enjoys strong economic ties with China and is building cooperation with the United States, particularly in areas such as mining, minerals, counterterrorism, and technology. He also highlighted transparent privatization efforts, including those involving Pakistan International Airlines, and announced plans for further privatization and outsourcing in airports, power distribution companies, and transmission lines.
IMF Programme and Structural Reforms
Referring to the IMF programme, Prime Minister Shehbaz said Pakistan has adhered to stringent conditions in letter and spirit, with the Fund now citing Pakistan as a success story for developing countries. In terms of structural reforms, he detailed tough decisions taken to shut down loss-making and inefficient state entities. For instance, the Utility Stores Corporation, which had been a burden on the national exchequer and offered substandard goods, has been closed to save public money. Similarly, the Pakistan Agricultural Storage and Services Corporation (PASSCO) and the Pakistan Public Works Department (PWD) have also been shut down, resulting in savings of billions of rupees despite resistance from vested interests.
Concluding his remarks, Prime Minister Shehbaz expressed optimism, stating, "We are at a point where Pakistan is about to take off," and stressed that unity, transparency, and sustained reforms are essential to achieving long-term growth and prosperity for the nation.
