PM Shehbaz urges shift from economic stabilisation to growth, job creation and export promotion

AI Summary

Prime Minister Shehbaz Sharif urged Pakistan to move from economic stabilisation toward growth, job creation and export promotion, while praising recent reforms and rising foreign-exchange reserves. He highlighted a $3 billion Eurobond issuance, construction incentives and real-estate REIT initiatives, and called for modernization of capital markets and stronger industrial competitiveness.

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday stressed the need to focus on sustainable economic growth, job creation and export promotion, saying the country had successfully restored macroeconomic stability through a collaborative effort. Addressing the gong ceremony in Karachi virtually to celebrate the listing of the Naya Nazimabad Apartment REIT scheme, the prime minister lauded the joint efforts of the federal and provincial governments and financial institutions in steering the economy out of severe challenges. Recalling his recent interactions with international bankers and financial leaders in New York and London, including executives from Citibank, JPMorgan and Barclays and the managing director of the IMF, the prime minister said global financial institutions had commended Pakistan’s implementation of long-overdue structural reforms, which had created an attractive ecosystem for investment. He particularly thanked the finance minister, cabinet members, the Federal Board of Revenue (FBR) and federal secretaries for establishing a replicable model of teamwork that had helped achieve macroeconomic stability and put Pakistan back on the path to sustainable development. He said the successful implementation of reforms and restoration of macroeconomic stability were the result of a cohesive partnership between the political hierarchy and military leadership working in harmony. Highlighting key economic indicators, he said Pakistan had successfully issued a $3 billion Eurobond against offers worth $6bn, while State Bank foreign exchange reserves had risen to around $21.4bn, alongside commercial bank reserves of $5.5bn. The prime minister also said foreign remittances and IT exports were on an upward trajectory, while the Roshan Digital Account was also performing robustly. However, stressing the need to shift from stabilisation to growth, he called for efforts to achieve economic expansion driven by technology, job creation, increased production and exports. The prime minister recalled that the federal budget for 2026-27 offered hundreds of billions of rupees in tax breaks and incentives for exporters, manufacturers and industries, including the construction sector. The premier further said that the incentives introduced by the government for the construction sector were now bearing fruit. He particularly commended real estate and industrial initiatives spearheaded by business leaders such as Arif Habib in Lahore and Karachi under the REIT structure, and called for further modernisation and improvement of the stock exchange and capital markets by studying other markets in the region. The prime minister expressed concern over the poor performance of certain industries that had received substantial subsidies and benefited from tariff protection, despite repeated commitments to import substitution and improved competitiveness. He called for an honest approach that prioritised the national interest over personal gains, stressing that progress depended on modernised machinery, higher productivity and hard work. Prime Minister Shehbaz particularly appreciated Chief of Defence Forces and Chief of Army Staff Field Marshal Syed Asim Munir for his steadfast support and commitment to national security and economic progress, describing him as a great partner throughout the journey. He also lauded the chairman of the National Accountability Bureau for recovering public land worth billions of rupees and for the plan to establish a land bank. He reiterated his resolve that through such dedicated efforts and commitment, Pakistan would emerge as a powerful economy and earn a prominent place in the comity of nations. Addressing the ceremony, Finance Minister Muhammad Aurangzeb highlighted the growing momentum of private-sector participation, saying Rs60bn had been disbursed in housing loans. Reflecting on the country’s economic turnaround, the finance minister said the economy had contracted three years ago, but sentiment had since sharply reversed, with foreign firms, particularly those from the United States, looking to enter the Pakistani market. He said the government would continue to provide the requisite ecosystem for the private sector. Outlining key achievements, he said tax targets had been surpassed and the number of tax filers had crossed 5.7 million, up from 3.9m last year. Prominent business leader Arif Habib, speaking at the ceremony, highlighted Pakistan’s successful return to international capital markets after four and a half years, saying the strong response to the Eurobond showed that global investors were closely tracking the country and had expressed confidence in its economy. He said sovereign ratings had steadily improved from CCC+ to B over the past two years, while the local currency had remained stable for three consecutive years. State Bank foreign exchange reserves had reached a record high of around $22bn, with total liquid reserves touching $27bn, he a