PM says economy getting back on its feet

Prime Minister Shehbaz Sharif has said that the economy was on the path to recovery, pledging that the journey toward growth had now commenced.

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.

While addressing an event at the Pakistan Stock Exchange (PSX) on Wednesday, he said Karachi was the backbone of Pakistan's economy, noting how the city’s once-dimmed lights had now returned, symbolising the revival of the nation's economic vigour.

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 effort.

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 (IMF) 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. PM Shehbaz mentioned that interest rates had dropped to 13%, but he hoped for a further reduction to 6%.

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.

Dar credit's Shehbaz's leadership for growth

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 (FBR), 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.