Pakistan Economy ‘Out of the Woods’, Says PM Shehbaz Sharif as Key Economic Indicators Show ‘Wonderful’ Performance

Pakistan Economy ‘Out of the Woods’, Says PM Shehbaz Sharif as IMF Projections and Key Indicators Show ‘Wonderful’ Performance

Prime Minister Shehbaz Sharif said on Saturday that Pakistan’s economy has emerged from a period of severe economic crisis, with key macroeconomic indicators now showing “wonderful” performance as a result of the government’s sustained reform efforts.

Citing the latest International Monetary Fund (IMF) projections for Pakistan, the prime minister noted that the risk of an economic free fall has eased, following the release of a fresh $1.2 billion IMF tranche. While challenges remain, the IMF assessment indicates that economic stabilisation in Pakistan is taking hold, though growth remains moderate and public debt pressures persist.

According to IMF data, Pakistan’s GDP growth is projected to rise from 2.6 per cent in FY2024 to 3.2 per cent by FY2026, signalling a gradual economic recovery under the ongoing IMF programme.

Speaking at the launch of the National Regulatory Reforms Framework in Islamabad, PM Shehbaz said the country was facing an extremely difficult economic situation when the current government assumed office.

“Through outstanding teamwork, effective planning and untiring efforts, I can say today with a sense of relief and achievement that Pakistan is economically out of the woods. Our mega economic indicators are wonderful,” he said, referring to the IMF disbursement as a key milestone.

The prime minister said the government is now shifting its focus towards economic growth, foreign direct investment (FDI), and job creation, particularly in high-potential sectors such as agriculture, information technology, and mines and minerals.

Highlighting Pakistan’s demographic advantage, PM Shehbaz said the country’s youth bulge would be empowered through vocational training and internationally certified skills, enabling employment opportunities both locally and overseas, thereby strengthening remittances and economic prosperity.

He described the new regulatory reforms as a “quantum jump” for the economy, aimed at facilitating business, industry, agriculture, and foreign investors, while reducing bureaucratic delays, corruption, and inefficiencies.

“We are fully aware of the economic challenges and prepared to move forward with the pace required for sustainable growth,” the prime minister added.

PM Shehbaz also expressed gratitude to the United Kingdom for its continued support, calling it a key partner in Pakistan’s development. He further described Pakistan’s relationship with the United States as “wonderful” and expressed optimism about future cooperation.

Earlier, Special Assistant to the Prime Minister for Industry and Production Haroon Akhtar Khan said the launch of regulatory reforms marked a decisive shift in Pakistan’s economic direction.

He said the government aims to transform Pakistan from a regulatory state to a developmental state, guided by three pillars: tariff rationalisation, regulatory modernisation, and export-led industrial growth.

“Under the new National Tariff Policy, we are moving towards predictability, competitiveness, and the gradual elimination of arbitrary duties,” Khan said.

UK Minister for International Development and Africa Baroness Jenny Chapman also praised Pakistan’s reform agenda, highlighting its entrepreneurial potential, natural resources, and strategic position in global trade.

She noted that UK-Pakistan trade has reached £5.5 billion annually, supported by a new trade dialogue and efforts to engage the 1.6 million-strong Pakistani diaspora in the UK to unlock private investment.