PRIME Minister Shehbaz Sharif has stressed the need for export-led growth and political stability to ensure the country’s economic development, expressing satisfaction over the country’s “improving” macroeconomic indicators. He made these remarks while chairing the 11th Apex Committee meeting of the Special Investment Facilitation Council (SIFC) to review various initiatives being steered through the forum in Islamabad on Thursday. The Prime Minister underlined the economic progress of the country was dependent on achieving complete peace amid the security challenges the country was facing.
Economic progress is directly linked to political stability and congenial security environment and with this in view it is satisfying that the crucial forum of SIFC brings together both the elected political leadership and the Army high command to mull over interlinked issues and take prompt measures to resolve them. The very fact that the SIFC held its 11th meeting in a comparatively short span of time is reflective of the role and determination of the Council to take Pakistan forward on the path of economic development. It has succeeded in attracting foreign investment and boosting confidence of the business community in an otherwise tough and uncertain environment. The sincerity of the civil and military leadership to address the issues of political instability and security challenges is evident from the recent moves aimed at national reconciliation and intensification of the war against terror. The Government and the PTI negotiating teams have already held two rounds of talks and the third one is slated for next week when the latter will present its charter of demands. The reports that the two rounds were held in an amicable environment augur well for positive progress, which will have salutary effect on the overall political atmosphere. It is hoped that the two sides will show necessary flexibility in their positions to arrive at some understanding to promote national unity and solidarity, which will help accelerate the pace of progress and economic development. The security issue has also come to the centre stage of the national debate in the backdrop of an uptick in terrorist activities, especially in KP and Balochistan where Afghan-based TTP elements are mounting attacks both on security personnel as well as civilians. The nature of the threat can be gauged by the fact that according to an annual security report, issued by the Centre for Research and Security Studies, with at least 685 members of security forces losing their lives amid a total of 444 terror attacks, 2024 turned out to be the deadliest year for civil and military security forces of Pakistan in a decade. The issue has been raised repeatedly with the Kabul regime but in the face of non-cooperation, Pakistan was forced to carry out aerial strikes against terrorist hideouts in Afghanistan recently. This shows determination of the civilian and military leadership to wipe out the menace of terrorism at all costs. It is because of the right policies and approach of the Government, backed firmly by the Army leadership, that macroeconomic indicators have started improving. For the first time after 2018, the inflation rate has eased down to 4.1%, foreign remittances have posted an increase of 34%, exports have also jumped, and foreign exchange reserves have jumped from $4 billion to $12.5 billion. Similarly, the policy rate which was now at 13% (down from record 22) has space of further 8% keeping in view the inflation rate. As pointed out by the Prime Minister, smuggling of sugar through Afghanistan had been reduced to zero which was a positive sign for the country’s economy. He informed that the national exchequer received $0.5 billion in terms of sugar exports while the rice exports posted $4 billion. The SIFC approved the action plan for the optimization of special economic zones (SEZs) which will, hopefully, rejuvenate the industrial landscape of Pakistan. The focus on human resource development, skills development and global accreditation will also lay sound foundations for economic development.
