Says excessive taxes unsustainable; Economy getting back on its feet; Sees room for more reduction in policy rate
Prime Minister Shehbaz Sharif on Wednesday remarked that IMF agreements are currently necessary, but Pakistan will part ways with the world lender “when the time is right.”
Addressing a ceremony at Pakistan Stock Exchange, the prime minister reiterated plans for self-reliance.
Highlighting Karachi’s significance, he noted its resurgence as a financial and export hub, crediting collective government efforts for the city’s brighter outlook.
“Karachi’s lights had dimmed in the past, but today, it is shining once again,” PM Shehbaz said, adding that the city remains the centre of Pakistan’s trade and finance. He underscored the importance of harnessing stock market momentum for economic growth.
The premier expressed optimism about future initiatives, including the “Uraan Pakistan” programme aimed at propelling the nation’s economy upward. He described recent successes as a result of teamwork but stressed the need for continued growth-focused reforms.
Prime Minister Shehbaz Sharif said that the policy rate might be reduced by an additional 8 percentage points, despite having already been decreased to 13 percent.
Addressing a ceremony at Pakistan Stock Exchange, the prime minister said that, “The policy rate has been reduced to 13%, and there is still room for an 8-point reduction. I would like the interest rate to be further reduced to 6% Prime Minister.”
He said that the main goal of the government is to convert macroeconomic stability into economic growth, adding that he will be sitting with the financial experts of Karachi and other cities to move Pakistan forward with unity of thought and action, and achieve economic targets.
Shehbaz Sharif said that the economy was getting back on its feet, vowing that the journey towards growth had officially begun.
During a day-long visit to Karachi, the premier expressed his joy at visiting the stock market for the first time, emphasising the importance of economic growth in the nation.
He further added that Pakistan’s economy was once again standing on its feet, stressing the need for continued growth. “If everything were perfect, we would be living in a fool’s paradise,” the prime minister said.
PM Shehbaz expressed his readiness to collaborate with all sectors for sustained economic development, affirming that economic progress would require collective efforts.
The prime minister remarked that the country had achieved economic stability, and while there were still challenges, Pakistan was heading in the right direction.
He assured that the country’s commitment to the International Monetary Fund would be fulfilled but hinted that there would come a time when Pakistan would say goodbye to the IMF.
He also noted the tax targets for the next six months, which were set clearly and would be met through diligent efforts.
The prime minister called on experienced economists to guide the country’s financial recovery and sought actionable recommendations for further improvements.
He stressed the need for the private sector to play a larger role in the economy’s growth, with an emphasis on the importance of increasing tax revenues. Prime Minister Shehbaz Sharif said he was ready to sit with everyone for the economic development of the country. The prime minister congratulated the PSX for excellent performance in 2024.
He said the main goal of the government is to convert macroeconomic stability into economic growth. He expressed his anticipation of receiving proposals to implement an export-led growth agenda and exploit the full potential of natural resources.
The prime minister said that the privatization process will be taken forward in an entirely transparent manner.
“Pakistan has achieved economic stability in recent months. We are trying to bring the interest rate to 6pc to boost the investment,” said the prime minister.
Deputy Prime Minister Ishaq Dar, Information Minister Attaullah Tarar, Finance Minister Muhammad Aurangzeb, Sindh Governor Kamran Tesori and CM Murad Ali Shah were also present on the occasion.
Deputy Prime Minister Ishaq Dar, speaking at the event, reflected on the long-term benefits of stock market integration, which began nine years ago, noting that the markets had grown into a strong foundation for the economy.
He acknowledged the struggles faced in 2017 due to political instability and the economic downturn that followed. DPM Dar also highlighted the threat of economic collapse that countries faced globally during the COVID-19 pandemic.
DPM Dar reassured business leaders not to spread despair, assuring them that the “future looked bright”. He credited PM Shehbaz’s leadership for preventing the country from economic collapse and acknowledged that Pakistan’s diplomatic isolation had ended, with increasing foreign investor confidence in the nation.
Finance Minister Muhammad Aurangzeb also spoke at the event, underscoring the importance of the stock market’s role in boosting investor confidence in the economy.
FM Aurangzeb highlighted the progress made through the IMF agreement, which had provided economic stability, and noted that reforms in struggling public-sector institutions were underway.
He also pointed to the digitalisation efforts at the Federal Board of Revenue, the need for reforms in the energy sector, and the introduction of structural reforms to improve the country’s infrastructure. FM Aurangzeb emphasized that the federal government’s efforts to reduce expenses were also making a difference in improving economic conditions.
In his remarks, the finance minister noted that a reduction in the policy rate had eased the burden of debt and interest payments.
Earlier, PM Shehbaz was welcomed at the Pakistan Air Force Base Faisal by Sindh Governor Kamran Tessori and Chief Minister Murad Ali Shah. He was accompanied by Finance Minister Ishaq Dar, Information Minister Attaullah Tarar, and other officials.
