Shehbaz Sharif says Pakistan overcame near default by 2023 through collective efforts aimed at economic stability
Prime Minister Shehbaz Sharif speaks at the opening ceremony of Indus AI Week in Islamabad. PHOTO: RADIO PAKISTAN
Prime Minister Shehbaz Sharif on Wednesday stressed the need for a “whole of government approach” to address Pakistan’s economic challenges, calling on all stakeholders to jointly work towards sustained growth.
“Though the journey may be long, arduous and difficult, we have accepted the challenge. Pakistan will soon take its rightful place,” the prime minister said at the inaugural meeting of the Pakistan Governance Forum 2026 in Islamabad.
Reflecting on Pakistan’s near-default situation in June 2023, he said that with divine guidance and collective efforts, the country had been pulled back from the brink. He commended the federal and provincial governments as well as the military for stabilizing the macroeconomic situation over the past two years.
“We were on the verge of default, but today the macroeconomic situation has stabilized and inflation, which was hovering around 35%, has been reduced to below 7%,” he said. He added that the policy rate had been brought down to 10.5% and stressed the need for gradual export growth to unlock Pakistan’s economic potential.
The prime minister highlighted the government’s home-grown reforms and noted that the International Monetary Fund (IMF) had no role in these measures, which were necessary to prevent a boom-and-bust cycle. He also mentioned a reduction in electricity rates of Rs9 per
Prime Minister Shehbaz said the closure of corrupt entities such as the Utility Stores Corporation and the Pakistan Works Department had saved billions for the nation. He also highlighted the Ramazan package that distributes Rs38 billion to deserving families through digital wallets and described the process as transparent.
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“The government’s role is not to run business, but to facilitate the private sector, exporters and investors to support productivity and growth,” he said. The Prime Minister emphasized that Pakistan, rich in resources, could surpass other countries in economic strength through joint efforts.
He also called for widening the tax net, noting that the current tax-to-GDP ratio is 10.5%, and called for growth in exports, investment and foreign direct investment. The Prime Minister praised the IT sector’s growth of 34% and emphasized the need for investment in technical and vocational education, while stressing the transformative potential of IT and AI-driven initiatives.
He concluded by praising Planning Minister Ahsan Iqbal for the Uraan Pakistan initiative and expressed confidence that the entire approach of the government would succeed.
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In his speech, Iqbal said the forum was designed to generate actionable solutions through debate and shared perspectives. Emphasizing that good governance should be merit-based, transparent and citizen-focused, he noted that the Uraan Pakistan initiative serves as a transitional strategy for the economy.
Highlighting the government’s achievements over the past two years, Iqbal said, “If the path of transformation is pursued with full capacity and positive synergy, Pakistan can become a $1 trillion economy by 2035.”
The forum was attended by central government officials, provincial ministers, diplomats, business leaders, experts and traders.
