PM Shehbaz Emphasizes the Need to Honor IMF Commitments and Export-Led Growth
- Abeera Marium Siddiqui
- January 9, 2025
- 3:38 pm
- 40
- Current Affairs
Honoring IMF commitments and driving export-led growth remain at the core of Prime Minister Shehbaz Sharif’s economic vision for Pakistan. While addressing the Pakistan Stock Exchange (PSX) and several key events in Karachi, he reinforced the government's determination to follow the International Monetary Fund’s (IMF) reform program and create pathways for sustainable economic growth.
Commitment to IMF Reforms for Economic Stability
In July last year, Pakistan secured a three-year, $7 billion deal with the IMF, offering critical financial support during challenging times. PM Shehbaz Sharif stressed that prematurely exiting the IMF program would undermine the country’s progress.
We can’t just say tata bye bye once we take off. We will say goodbye to it forever when the time is right,
The IMF agreement requires Pakistan to implement reforms in public spending, taxation, and governance. Highlighting the nation’s progress, the prime minister noted the 10.8% tax-to-GDP ratio exceeded the IMF target of 10.6%. However, he acknowledged that achieving this milestone was only the beginning, emphasizing the urgent need for investment and further reforms to maintain momentum.
Interest Rate Reductions and Investment Prospects
The prime minister pointed out the State Bank of Pakistan's interest rate dropped from 22% to 13%, an encouraging development for the economy. While investors advocate for further reductions to 6%, he warned against reckless decisions.
We must move bravely but with caution,
He urged the business community to propose actionable strategies for export-led growth, underlining the importance of foreign direct investment (FDI) that retains profits in Pakistan and fuels sustainable development.
Harnessing Pakistan’s Resources for Export-Led Growth
PM Shehbaz Sharif highlighted untapped opportunities in Pakistan’s agriculture and mining sectors. Comparing the country's mineral resources to Saudi Arabia’s “black gold” (oil), he encouraged the business community to collaborate with the government on practical solutions for boosting exports. By leveraging natural resources and encouraging manufacturing, Pakistan can aim for long-term growth and job creation.
Transparency in Privatisation and Structural Reforms
During his address, the prime minister reaffirmed the government’s commitment to a transparent privatisation process. He used examples such as Pakistan International Airlines (PIA) and Islamabad International Airport to illustrate the fairness of these initiatives. According to PM Shehbaz, restructuring loss-making state-owned enterprises (SOEs) remains a key priority for improving the country’s fiscal health.
Transformative Healthcare Reforms
In addition to economic measures, PM Shehbaz Sharif celebrated the launch of the Aga Khan University’s Manual of Clinical Practice Guidelines. This initiative aims to enhance patient care, reduce strain on tertiary healthcare systems, and establish benchmarks for evidence-based practices. Developed with the GRADE-ADOLOPMENT methodology, the manual combines global best practices with local expertise to address Pakistan’s unique healthcare challenges.
The prime minister also commended the Aga Khan University for its significant contributions to medical education, research, and patient care. He stressed that integrating modern technology, telemedicine, and artificial intelligence into healthcare systems is no longer a luxury but a necessity.
Boosting Transparency with the Faceless Customs System
PM Shehbaz Sharif inaugurated the Federal Board of Revenue’s Faceless Customs Assessment System at the South Asia Pakistan Terminal. This system aims to enhance transparency in customs operations, with Goods Declarations processing times now reduced to as little as 10 minutes. He praised the collaboration between state institutions and the private sector, which has led to positive macroeconomic indicators, including an 11% increase in exports and a 34% rise in IT exports.
Celebrating Success at the Pakistan Stock Exchange
The day concluded on a celebratory note as PM Shehbaz Sharif, alongside senior officials, struck the gong at the PSX. This act marked the stock market’s remarkable performance as one of the top-performing markets globally. The prime minister emphasized the importance of collective efforts to sustain economic stability and create opportunities for growth.
