Macroeconomic indicators show a good trend, and reforms bring results: PM

Prime Minister Shehbaz Sharif said on Wednesday that Pakistan’s economy was exhibiting clear indications of growth and that the country was going forward with newfound confidence, as major economic indicators remained strong.

Addressing an event at the Pakistan Pavilion on the sidelines of the 56th Annual Meetings of the World Economic Forum, the prime minister stated that Pakistan had achieved macroeconomic stability through difficult but necessary reforms and was now firmly focused on export-led growth and sustainable development.

“Our inflation has fallen sharply from 30% to 5.5%, while the policy rate has been reduced from 22.5 percent to 10.5%,” he remarked, adding that the progress was due to diligent economic management.

He stated that Pakistan’s IT exports had made steady progress, now totaling around $3 billion per year through offshore routes.

The prime minister stated that Pakistan’s exports continue to encounter obstacles, but the future course is clear.

“Pakistan has to pursue export-led growth,” he said, emphasizing revenue collection reforms as a critical component of the approach.

He stated that the administration had implemented substantial improvements to the tax system, which was becoming entirely digitized. As a result, the tax-to-GDP ratio rose to 10.5 percent from 9 percent a few years ago, a substantial accomplishment.

Prime Minister Shehbaz highlighted sectoral prospects, stating that agriculture exports did well last year and that Pakistan was entering the mining and minerals industry.

He stated that deals had been reached with American and Chinese corporations to harness the country’s massive untapped resources in Gilgit-Baltistan, Azad Jammu and Kashmir, Khyber Pakhtunkhwa, and Balochistan.

He said Pakistan was also making tremendous progress in emerging industries such as information technology, artificial intelligence, and cryptocurrency, and that the country’s high youth population was both a burden and an opportunity.

Prime Minister Shehbaz also emphasized transparent privatization efforts, notably Pakistan International Airlines, and stated that additional privatization and outsourcing were planned for airports, power distribution businesses, and transmission lines.

Referring to the IMF project, he stated that Pakistan has met the Fund’s rigorous terms in letter and spirit, and that the Fund now cites Pakistan as a success tale for developing countries.