Islamabad : Prime Minister Shehbaz Sharif on Wednesday underscored the need for a cohesive national strategy to tackle Pakistan’s economic challenges, urging all institutions and stakeholders to work collectively for long-term and sustainable growth.
Addressing the inaugural session of the Pakistan Governance Forum 2026, the prime minister recalled that in June 2023 the country was nearing default. He said that through coordinated efforts by federal and provincial governments, along with the support of state institutions, Pakistan managed to stabilize its economy within two years.
Highlighting key improvements, PM Shehbaz noted that inflation had dropped significantly from around 35 percent to below 7 percent, while the policy rate had been reduced to 10.5 percent. He stressed the vast potential of the export sector and called for steady expansion to maximize its contribution to economic growth.
The premier stated that several structural reforms introduced by the government were homegrown measures aimed at ensuring economic stability without reliance on the IMF. In the energy sector, he said electricity tariffs had been reduced by Rs9 per unit while safeguarding solar investments, though he expressed concern over annual losses of Rs200 billion due to power theft and called for a united response to curb it.
PM Shehbaz also advocated closing Utility Stores, terming them hubs of corruption, and criticized the Pakistan Works Department for inefficiency, noting that its shutdown had saved billions of rupees. He highlighted the Ramazan Package, under which Rs38 billion is being digitally distributed to deserving citizens in a transparent manner.
The forum was attended by chief ministers, federal and provincial ministers, diplomats, investors, business leaders, and policy experts. The prime minister reiterated that the government’s responsibility was to facilitate businesses, encourage exporters and investors, and create a supportive environment for productivity rather than operate commercial enterprises itself.
He further emphasized expanding the tax base, revealing that recent reforms had increased the tax-to-GDP ratio to 10.5 percent. The upcoming fiscal budget, he said, would prioritize growth in production, exports, foreign direct investment, and reduction of indirect taxes. He also criticized the failure of certain sectors to deposit collected indirect taxes, while acknowledging improved compliance in the sugar, cement, and tobacco industries.
PM Shehbaz highlighted the 34 percent growth in the IT sector but stressed its untapped potential. He called for equipping youth with technical and vocational skills, saying IT and AI-led innovation could transform multiple sectors of the economy. He also praised Planning Minister Ahsan Iqbal for launching the Uraan Pakistan initiative, describing it as a significant step toward economic restructuring.
Speaking at the event, Ahsan Iqbal said the forum aimed to generate practical, solution-oriented recommendations through dialogue and collaboration. He added that effective governance required clear targets, transparency, and citizen-centric policies, expressing confidence that with consistent reforms, Pakistan could achieve a $1 trillion economy by 2035.
