Says Pakistan overcame near-default in 2023 through collective efforts, aiming for economic stability
Prime Minister Shehbaz Sharif speaking at the opening ceremony of Indus AI week in Islamabad. PHOTO: RADIO PAKISTAN
Prime Minister Shehbaz Sharif on Wednesday emphasised the need for a “whole-of-government approach” to address Pakistan’s economic challenges, urging all stakeholders to collectively work toward sustained growth.
“Though the journey can be long, arduous and thorny, we have accepted the challenge. Pakistan will carve its due place soon,” the prime minister said at the inaugural session of the Pakistan Governance Forum 2026 in Islamabad.
Reflecting on Pakistan’s near-default situation in June 2023, he said that with divine guidance and collective efforts, the country had been pulled back from the brink. He praised the federal and provincial governments, as well as the military, for stabilising the macroeconomic situation over the past two years.
“We were at the verge of default, but today the macroeconomic situation has stabilised, and inflation, which was hovering around 35%, has been reduced to under 7%,” he said. He added that the policy rate had been brought down to 10.5% and stressed the need for gradual export growth to unlock Pakistan’s economic potential.
The prime minister highlighted the government’s home-grown reforms, noting that the International Monetary Fund (IMF) had no role in these measures, which were necessary to prevent a boom-and-bust cycle. He also cited a Rs9 per unit reduction in electricity prices, solar investment initiatives, and measures to curb power theft, which costs the country around 200 billion rupees annually.
PM Shehbaz said closing corrupt entities such as the Utility Stores Corporation and the Pakistan Works Department had saved billions for the nation. He also highlighted the Ramazan Package, distributing Rs38 billion to deserving families via digital wallets, describing the process as transparent.
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“The government’s role is not to do business but to facilitate the private sector, exporters and investors to support productivity and growth,” he said. The prime minister stressed that Pakistan, rich in resources, could surpass other countries in economic strength through joint efforts.
He also called for expanding the tax net, noting the current tax-to-GDP ratio stands at 10.5%, and urged growth in exports, investment, and foreign direct investment. The PM lauded the IT sector’s 34% growth and emphasised the need for investment in technical and vocational training, while underlining the transformative potential of IT and AI-driven initiatives.
He concluded by commending Planning Minister Ahsan Iqbal for the Uraan Pakistan initiative and expressed confidence that the whole-of-government approach would succeed.
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In his address, Iqbal said the forum was designed to generate actionable solutions through debate and shared perspectives. He emphasised that good governance should be merit-based, transparent, and citizen-focused, and noted that the Uraan Pakistan initiative serves as a transitional strategy for the economy.
Highlighting the government’s achievements over the past two years, Iqbal said, “If the transformational path is pursued with full capacity and positive synergy, Pakistan could become a $1 trillion economy by 2035.”
The forum was attended by key government officials, provincial ministers, diplomats, business leaders, experts, and traders.
