PM reaffirms commitment to economic growth as govt completes one year in power

PM explained that both he and Army Chief visited friendly countries to address issues impeding the IMF programme

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Prime Minister Shehbaz Sharif has pledged to eliminate terrorism and enhance foreign investment in Pakistan as the PML-N-led coalition government completes its first year in power.

Addressing the federal cabinet in Islamabad, PM Shehbaz Sharif emphasised the importance of unity in order to drive the country's economic and social progress.

“We should work in unison instead of pulling each other’s legs,” the Prime Minister stated, praising the government’s achievements in stabilising the economy, including a significant drop in inflation and improvements in key economic indicators.

Shehbaz Sharif explained that both he and Army Chief General Asim Munir visited friendly countries to address issues impeding the IMF programme. He noted that these efforts were crucial in preventing Pakistan from defaulting and helping the nation’s economic indicators improve.

“Our government has completed one year, and despite facing opposition, we have not been derailed by any scandals. Our progress will continue, and the journey towards national development will remain steadfast until the end of extremist factions,” Shehbaz Sharif stated.

The premier also highlighted the government's efforts to provide financial relief, including a Rs20 billion Ramadan package aimed at helping 4 million families. This initiative, delivered through a digital wallet system, aims to prevent allegations of financial mismanagement that have plagued past government programmes.

PM Shehbaz criticised the Pakistan Tehreek-e-Insaf (PTI) leadership for writing letters to the International Monetary Fund (IMF), urging the global lender to reject a loan for the cash-strapped country. He pointed out that these actions were detrimental to national interests.

The Prime Minister further stressed that all macroeconomic indicators were on the rise and reaffirmed the government's target of transforming Pakistan into a one trillion-dollar economy by 2035.

The Prime Minister, emphasising the government’s commitment to economic stability, expressed confidence that the Rs400 billion worth of tax cases pending in various courts would be resolved promptly, similar to the case handled by the Sindh High Court, which granted relief to the government with Rs23 billion.

He also highlighted the necessity of addressing the Rs850 billion in losses accumulated by state-owned enterprises, describing them as ‘bottomless pits’ that need to be filled. Additionally, he stressed the urgent need to eliminate the circular debt in the power sector.

Deputy Prime Minister Blames Past Policies for Rise in Terrorism

Deputy Prime Minister and Foreign Minister Ishaq Dar echoed the Prime Minister's sentiments on economic stability, noting that Pakistan's diplomatic isolation had ended and the country had successfully joined the United Nations Security Council (UNSC) for the 2025-26 term.

However, Dar blamed past opposition policies for the resurgence of terrorism in the country, expressing confidence that the government would eliminate extremism through its "Azm-e-Istehkam" initiative.

Economic Outlook and Reforms

Finance Minister Muhammad Aurangzeb provided an optimistic overview of the economy, citing a 71% return on the Pakistan Stock Exchange and the highest current account surplus in two decades. He also highlighted significant reforms, including pension reforms and the introduction of an agriculture tax.

Minister for Power Awais Ahmed Leghari updated the cabinet on energy sector reforms, which have reduced the industrial cross subsidy by Rs151 billion. The government has also worked to tackle inefficiencies in independent power producers (IPPs), resulting in lifetime savings of Rs1,333 billion.

With the government’s economic policies showing signs of success, the leadership expressed optimism about Pakistan's future, with foreign investments from countries like Saudi Arabia, UAE, and Azerbaijan expected to further strengthen the economy.

The cabinet also discussed measures to combat the risks of climate change and ongoing work in Balochistan to solarise tube wells, which is expected to save Rs100 million in power sector losses.