Davos, Switzerland: Pakistan is making steady economic progress, with clear policies and reforms driving growth and stability, said Prime Minister Muhammad Shehbaz Sharif while addressing a breakfast meeting at the Pakistan Pavilion on the sidelines of the 56th Annual Meeting of the World Economic Forum (WEF).
The Prime Minister emphasized that Pakistan is moving forward with confidence and a clear direction, highlighting several key indicators of economic improvement and reform.
Significant Reduction in Inflation and Policy Rates
PM Shehbaz Sharif noted that inflation has fallen dramatically from 30% to around 5.5%, a major achievement considering the global economic challenges. In addition, the policy interest rate has been reduced from 22.5% to 10.5%, supporting both businesses and consumers by lowering the cost of borrowing.
“These measures are helping stabilize the economy and create a favorable environment for investment,” he said.
Strong Growth in IT and Emerging Technologies
The Prime Minister highlighted the progress in Pakistan’s IT sector, which has benefited from supportive government measures, digitization, and structural reforms. Pakistan’s IT exports are increasing steadily, making a notable contribution to foreign exchange earnings.
He further stressed that Pakistan is rapidly advancing in artificial intelligence (AI) and emerging technologies, which will play a crucial role in driving innovation and competitiveness in the global market.
Higher Tax-to-GDP Ratio Through Structural Reforms
Structural reforms and digitalization initiatives have helped increase the tax-to-GDP ratio to 10.5%, reflecting improved revenue collection and fiscal management. PM Shehbaz Sharif stated that these reforms are designed to strengthen Pakistan’s economic foundations and ensure long-term sustainability.
Encouraging Progress in Agriculture and Mineral Sectors
Pakistan’s agriculture exports are showing promising growth through international partnerships, which are helping farmers access new markets and improve production efficiency.
Similarly, the mines and minerals sector is experiencing rapid development, attracting foreign investment and creating job opportunities. The Prime Minister emphasized that leveraging natural resources responsibly is essential for economic growth and industrial development.
Focus on Export-Led Growth
Prime Minister Shehbaz Sharif underlined that export-led growth has been identified as the future path for Pakistan’s economic stability and development. By expanding exports across IT, agriculture, minerals, and manufacturing, Pakistan aims to strengthen its foreign reserves, create jobs, and achieve sustainable economic progress.
“Our goal is to create an economy that is competitive, innovative, and resilient to global challenges,” he said.
Global Engagement and Partnerships
Speaking at the WEF breakfast, the Prime Minister highlighted Pakistan’s commitment to international cooperation and partnerships. By engaging with global investors and multilateral organizations, Pakistan seeks to attract investment, technology transfer, and trade opportunities.
Conclusion
Under the leadership of PM Shehbaz Sharif, Pakistan is making significant strides toward economic stability, innovation, and sustainable growth. With reduced inflation, improved fiscal management, rising IT exports, and strong focus on agriculture and minerals, the country is positioned to achieve its vision of export-led development and global competitiveness.
FAQs (Frequently Asked Questions)
1. What economic improvements did PM Shehbaz Sharif highlight?
He mentioned reduced inflation (30% to 5.5%), lower policy rates (22.5% to 10.5%), and growth in IT, agriculture, and minerals.
2. How has Pakistan improved its tax system?
Through structural reforms and digitization, the tax-to-GDP ratio has increased to 10.5%.
3. Which sectors are driving Pakistan’s export growth?
Key sectors include IT, agriculture, and mines and minerals, with export-led growth being a national priority.
4. What role do technology and AI play in Pakistan’s economy?
Rapid advancement in IT, AI, and emerging technologies is helping innovation, global competitiveness, and foreign exchange earnings.
5. What is Pakistan’s strategy for long-term economic stability?
The government aims for export-led growth, international partnerships, and structural reforms to ensure sustainable development.
