ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday emphasized the strong connection between political stability and economic growth, asserting that the strength of a country’s economy is fundamentally rooted in its political structure.
The prime minister while chairing a meeting of Special Investment Facilitation Council (SIFC) – which serves as a hybrid civil-military platform aimed at promoting economic growth – remarked that macroeconomic indicators had shown considerable improvement as a result of the initiatives undertaken by the economic team.
He expressed hope that 2025 would usher in a new era of prosperity and growth in the country, adding for the first time since 2018, inflation has been reduced to 4.1 per cent, foreign remittances have increased by 34 per cent, exports have risen and foreign exchange reserves have surged from $4 billion to $12.5 billion.
Interest rate cut to help stimulate economic growth: PM
He added that the policy rate, currently at 13 per cent, still had room for an additional eight per cent decrease, factoring in the current inflation rate.
He also highlighted the successful signing of memoranda of understandings (MoUs) worth billions of dollars with Saudi Arabia, Qatar and the UAE, saying these would go a long way in enhancing foreign investment in Pakistan.
He continued that the emphasis should be on export-driven expansion as the nation has entered a phase of growth, asserting that this is the only viable path to attain economic development.
Sharif also showered praise on Federal Board of Revenue (FBR) and the economic team led by Finance Minister Muhammad Aurangzeb for collecting an additional Rs72 billion under advance-to-tax ratio (ADR), which helped nearly meet the government’s tax revenue target for December 2024.
The premier further noted that Pakistan had reduced the time duration of container inspections by 39 per cent and provided an 89 per cent relief to businessmen due to the introduction of a faceless interaction facility.
“Additionally, smuggling of sugar through Afghanistan had been reduced to zero, which was considered a positive sign for the economy. Pakistan also earned $0.5 billion in sugar exports and $4 billion from rice exports,” he added.
To combat the menace of terrorism, Sharif reaffirmed the government’s commitment to countering the threat, saying the security has become a big challenge and without effectively eliminating the menace of militancy, we cannot move forward.
The prime minister also congratulated the relevant stakeholders for the agreement between tribes to normalise the situation in Kurram, while expressing grief over the loss of innocent lives in the region.
Copyright Business Recorder, 2025
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