Although the IMF’s strict conditions posed
challenges, PM asserted the economy now
stabilized, positioned for long-term growth
Associated Press of Pakistan
Islamabad: Prime Minister Shehbaz Sharif on Saturday stated that Pakistan’s economy is set for a major takeoff following a year of dedicated efforts by the government’s economic team to restore stability.
Economic Recovery and IMF Deal
Addressing an event marking Youm-e-Tameer-o-Taraqqi, the prime minister emphasized that the financial sector had overcome significant challenges and was now on a path to sustained recovery and progress.
He highlighted that the government successfully negotiated with the International Monetary Fund (IMF) to secure a $7 billion, three-year program in September 2024, preventing the country from defaulting. Although the IMF’s strict conditions posed challenges, he asserted that the economy had now stabilized and was positioned for long-term growth.
Declining Inflation and Tax Contributions
PM Shehbaz Sharif noted that inflation had plummeted from 40% to 2.4% in January 2025, leading to a decline in the policy rate.
He acknowledged the sacrifices of the salaried class, which collectively contributed Rs 300 billion in taxes due to the IMF program, and paid tribute to their role in economic recovery.
Business Community and Anti-Smuggling Measures
The prime minister urged the business community to support the government’s stabilization efforts, assuring them of their involvement in policymaking. He reaffirmed the government’s commitment to curbing border smuggling, citing the legal export of sugar to Afghanistan, which generated $211 million in foreign exchange, revenue that would have otherwise been lost to smuggling.
He praised the Pakistan Army and law enforcement agencies for their role in tackling smuggling and safeguarding the economy.
Privatization and Security Concerns
Discussing privatization, the prime minister stated, “We are now moving towards a massive privatization process, as the government has no role in business activities.”
On security, he noted that terrorism had nearly been eradicated by 2018, but due to poor policies of the previous government, it had resurfaced. “Without eliminating terrorism, Pakistan cannot achieve economic growth and development,” he warned.
Uraan Pakistan Programme and Economic Reforms
PM Shehbaz Sharif expressed confidence in the recently launched Uraan Pakistan program, aiming for economic revitalization.
Finance Minister Muhammad Aurangzeb highlighted that inflation had dropped significantly, while the policy rate was lowered to 12%, reducing the government’s debt burden. He stressed that for the first time, structural reforms, right-sizing, and pension reforms were being rigorously implemented.
Exports and Business Growth
Planning Minister Ahsan Iqbal attributed Pakistan’s economic lag to inconsistent policies. Under the Uraan Pakistan initiative, he projected that exports would reach $100 billion in five years. He also proposed exempting export-led industries from national holidays to accelerate production.
Commitment to Development
Information Minister Attaullah Tarar praised PM Shehbaz for prioritizing economic stability over political gains.
President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Atif Ikram Sheikh, also addressed the gathering, acknowledging the business community’s role in Pakistan’s development.
