Web Desk: Prime Minister Shehbaz Sharif announced a reduction of Rs4.04 per unit in electricity prices for industries, signalling a renewed push to support exporters and revive economic growth.
Speaking at a ceremony held in honor of leading exporters and business figures in the federal capital, Sharif said the government’s role was to facilitate business rather than engage in commercial activity itself.
Sharif said sustainable growth required a strong private sector and pledged closer consultation with traders and industrialists in shaping economic policy.
“We must now move toward growth,” he said, adding that proposals from the business community would be welcomed and incorporated into policymaking.
He praised exporters for increasing shipments despite economic challenges, saying their efforts had earned the nation billions of dollars in foreign exchange.
Turning to recent economic difficulties, Sharif recalled that Pakistan had faced the risk of default, with speculation in 2023 that the country had already technically defaulted.
He said he had met the managing director of the International Monetary Fund in Paris that year, where securing a new financing structure had appeared difficult. By contrast, Sri Lanka, he noted, had already fallen into default and was facing street protests.
Sharif said Pakistan avoided a similar fate after his government assured the IMF it would fully implement agreed reforms, resulting in a short-term program that helped stabilize the economy.
The prime minister said the economy had since stabilized, with inflation falling to single digits and the policy interest rate reduced from 22% to around 10.5%.
However, he acknowledged that the recovery remained fragile, citing rising unemployment, high costs, and competitiveness challenges, with some countries offering cheaper products than Pakistan.
Sharif said further reductions in interest rates were necessary to fully utilize industrial capacity.
Sharif credited friendly countries, including China, Saudi Arabia, the United Arab Emirates, and Qatar, for supporting Pakistan through loan rollovers and financial assistance during difficult times.
He reiterated that governments should not run businesses, saying such involvement often led to inefficiency. Instead, he said the private sector must lead growth, exports, and innovation.
He emphasized the importance of supporting small and medium-sized entrepreneurs and said risk-taking was essential for economic success.
Sharif said increasing imports was necessary to expand exports and dismissed concerns over rising inbound trade. He also highlighted recent diplomatic gains, saying Pakistan’s international standing had improved.
He announced that top-performing exporters would be issued special blue passports valid for two years, describing traders and exporters as the backbone of the economy.
On state-owned enterprises, Sharif said the privatization of Pakistan International Airlines had been conducted transparently and pledged full government support to its new management to deliver world-class passenger services.
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