Prime Minister Shehbaz Sharif, during a meeting of the Special Investment Facilitation Council (SIFC) on Thursday, highlighted the intrinsic link between political stability and economic development. He emphasized that a robust political framework is foundational for the strength and growth of a country's economy.
The Prime Minister noted significant improvements in Pakistan’s macroeconomic indicators and expressed confidence that the year 2025 would herald prosperity and growth. For the first time since 2018, the inflation rate has dropped to 4.1%, marking a significant milestone. Additionally, foreign remittances have increased by 34%, exports have risen, and foreign exchange reserves have grown from $4 billion to $12.5 billion.
Discussing monetary policy, PM Shehbaz highlighted that the policy rate, currently at 13%, has the potential for a further reduction of 8% given the declining inflation rate. He also mentioned that memoranda of understanding worth billions of dollars have been signed with countries such as Saudi Arabia, Qatar, and the UAE, signaling a positive trajectory for foreign investment.
Focus on Export-Led Growth
Shehbaz Sharif declared that Pakistan had transitioned from economic stability to the growth stage. He stressed the importance of focusing on export-led growth as the only viable path to sustained economic development. “If we want to achieve economic development, then we will have to focus on export-led growth... we have no other option,” he remarked.
Achievements in Revenue and Trade
The Prime Minister lauded the Federal Board of Revenue (FBR) and the economic team for their efforts, which led to the collection of an additional Rs72 billion under the advance-to-tax ratio (ADR). This achievement brought the government close to meeting its tax revenue target for December 2024. Furthermore, he highlighted the reduction of container inspection times by 39% and a remarkable 89% relief for businesses due to the faceless interaction facility.
In terms of trade, sugar smuggling to Afghanistan has been eradicated, benefiting the economy. The national exchequer earned $0.5 billion from sugar exports, while rice exports reached an impressive $4 billion.
Addressing Security and Terrorism
The Prime Minister also discussed the critical issue of security, stating that law enforcement agencies were fully committed to thwarting terrorist threats. “Security has become a big challenge today and without crushing the menace of terrorism, we cannot move forward,” he said. He expressed grief over the loss of innocent lives in the Kurram district and commended stakeholders for reaching an agreement to normalize the situation in the area.
Conclusion
The Prime Minister’s address underscored the government's multi-faceted approach to fostering economic growth, ensuring security, and promoting trade. With improved macroeconomic indicators and strategic partnerships, Pakistan appears poised for a period of stability and prosperity.
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