Tough decisions taken, country back on its feet: PM

ISLAMABAD: Prime Minister Shehbaz Sharif on Saturday stated that Pakistan has regained stability after making tough decisions, but the road ahead remains challenging.

Speaking at an event marking Youm-e-Tameer-o-Taraqqi, as reported by Geo News, the premier emphasized the need for national peace and harmony. He highlighted that, for the first time in the country’s history, the political government and institutions are working in collaboration.

Urging resilience, he remarked, “There is no need to be disheartened. We will work hard and progress.”

Shehbaz Sharif noted that the economy is now poised for growth following a year of dedicated efforts by the government’s economic team to restore stability. He stressed that Pakistan’s financial sector has overcome major hurdles and is now on a path of sustained recovery.

“Pakistan’s journey from darkness to light within a year is a result of collective efforts,” he said.

He pointed out that the government successfully secured a $7 billion, three-year program with the International Monetary Fund (IMF) in September last year, preventing an economic default. While acknowledging the challenges posed by the IMF’s strict conditions, he asserted that the economy has now stabilized and is ready for sustained progress.

The prime minister recognized the hardships faced by the salaried class due to the IMF program, noting that they collectively pay Rs300 billion in taxes. He paid tribute to their contributions.

Highlighting economic improvements, Shehbaz Sharif stated that the inflation rate had dropped from 40% to 2.4% in January 2025, leading to a reduction in the policy rate.

He called on the business community to support the government’s economic stabilization efforts, assuring that they would be fully engaged in policymaking. He reiterated that economic growth is impossible without private-sector involvement.

On tackling smuggling, he praised the role of the Pakistan Army and law enforcement agencies. He cited the government’s move to legalize sugar exports to Afghanistan, which brought in $211 million in foreign exchange—revenue that would have otherwise gone to smugglers.

Addressing privatization, he stated, “We are now moving towards a massive privatization process, as the government has no role in business activities.”

Shehbaz Sharif also criticized past policies that led to a resurgence of terrorism, stressing that sustainable economic growth and development cannot be achieved without eradicating terrorism. He called for national unity, stability, and collective efforts from all sectors of society.

Expressing his long-term vision, the prime minister said he wants to leave behind a legacy of sustainable development. He expressed confidence in the government’s Uraan Pakistan program, believing it will achieve its objectives.

Finance Minister Muhammad Aurangzeb credited the government’s prudent policies for reducing inflation from 40% to 2.4% and lowering the policy rate to 12%, easing the debt servicing burden. He emphasized that, for the first time, the government is rigorously implementing structural reforms, rightsizing, and pension reforms.

Planning Minister Ahsan Iqbal highlighted the need for policy consistency, stating that Pakistan’s economy has lagged behind its regional counterparts due to frequent disruptions. Under the Uraan Pakistan program, he aims for the country to reach an export target of $100 billion within five years. To achieve this, he proposed exempting export-led industries from national holidays.

Information Minister Attaullah Tarar praised Shehbaz Sharif for prioritizing national interests over political gains. He also acknowledged the business community’s contributions to the country’s development.

Atif Ikram Sheikh, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), also addressed the gathering.