Pakistan’s Prime Minister Shehbaz Sharif underscored the importance of adhering to the International Monetary Fund (IMF) programme during his address to the business community at the Pakistan Stock Exchange (PSX) on Wednesday. The premier emphasized that while the ultimate goal is to reduce reliance on the IMF, the government cannot sever ties with the programme prematurely.
“We need to honour IMF commitments—we can’t just say ‘tata bye-bye’ once we take off,” Sharif remarked. “We will bid them farewell forever when the time is right.”
Economic Growth and Investment Priorities
Highlighting the role of the business community in achieving economic stability, PM Sharif noted the importance of meeting and exceeding tax collection targets. “If you look at what the IMF stated—10.6% tax-to-GDP ratio—we have achieved 10.8%. It’s an achievement worth celebrating, but it’s just the beginning,” he said.
He called for greater investment, pointing to the reduction in the State Bank of Pakistan’s interest rate from a record-high 22% to 13%. “There’s still an 8-point gap, and I would like it to go to 6%, but this has to be done cautiously to avoid future economic traps,” he added.
The premier stressed the need for export-led growth and foreign direct investment (FDI), urging business leaders to present actionable strategies. “Growth must be export-led, with profits and dollars retained within the country. I need tangible proposals to make this a reality,” he said.
Privatization and Transparency
Addressing the government’s privatization efforts, PM Sharif assured the business community that the process is being conducted transparently. Citing examples such as Pakistan International Airlines (PIA) and Islamabad Airport, he said, “The entire process was 100% transparent. Islamabad Airport’s privatization is expected to conclude in the coming days with complete transparency.”
Comparison with Saudi Arabia and Future Outlook
Drawing a comparison between Pakistan and Saudi Arabia, the prime minister highlighted Pakistan’s untapped potential in mines and minerals, juxtaposed with Saudi Arabia’s wealth in oil. He reiterated that economic growth must remain a priority, despite critics warning of potential risks such as a boom-bust cycle.
“To those who caution about the ‘engine heating up’ or Pakistan heading toward another cycle, I ask: what other way is there? We must chart a path toward sustainable growth,” he said.
Karachi Visit Highlights
During his day-long visit to Karachi, PM Shehbaz was welcomed at Faisal Air Base by Sindh Governor Kamran Tessori and Chief Minister Murad Ali Shah. He held meetings with Sindh’s leadership and the business community and toured the South Asia Pakistan Terminal at Karachi Port Trust.
The premier also inaugurated the Federal Board of Revenue’s (FBR) Faceless Customs Assessment System, a step toward greater transparency in customs operations.
At the PSX, PM Shehbaz participated in a ceremony celebrating the exchange’s recognition as the second-best performing stock market globally in 2024. He also served as the chief guest at the launch event for the Aga Khan University Manual of Clinical Practice Guidelines, reflecting his government’s focus on healthcare reforms.
PM Sharif’s remarks and engagements in Karachi underscore his government’s commitment to economic stability, investment, and transparent governance as Pakistan navigates its path toward sustainable growth.
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