Pakistan must introduce incentives to transform economy, PM Shehbaz tells NEC

Prime Minister Shehbaz Sharif on Wednesday said Pakistan must “introduce incentives” to accelerate GDP and move beyond macroeconomic stability.

Addressing the National Economic Council (NEC) meeting, after several delays, the PM stressed that the next phase requires urgent action on jobs, production, and exports.

Pakistan has achieved macroeconomic stability, “but there is a need to inject growth, improve employment opportunities and production, increase exports, and accelerate economic activity,” he said.

PM noted that despite the ongoing geopolitical crisis, which led to a significant increase in energy prices, Pakistan has managed to comply with IMF conditions.

The prime minister added that the federal government has been consulting with the provinces on the upcoming budget for several weeks.

“Without federal and provincial integration and support, we would not have reached this point. Now we have to move forward quickly,” he said.

“Our biggest challenge at present is to strengthen our defences and curb terrorism,” he said, expressing optimism that terrorism would soon be eliminated.

He emphasised that to achieve growth and accelerate the country’s GDP, “it is essential to introduce incentives that drive export growth, revive manufacturing, and transform the economy”.

PM Shehbaz also informed the council that he had a detailed discussion with IMF Managing Director Kristalina Georgieva on Tuesday. “She was extremely appreciative of Pakistan’s sincere efforts,” he said.

The NEC is Pakistan’s highest constitutional forum for economic planning and coordination between the federal and provincial governments.

Chief Ministers of all provinces participated in the meeting.

The NEC meeting, originally scheduled for May 22, was postponed and rescheduled for June 3. However, it was postponed again and rescheduled for June 8, 2026.

Earlier, Business Recorder reported that the government is likely to postpone the presentation of the 2026–27 federal budget from June 10 to June 12, with a final decision on the proposed change expected in a day or two.