2 min read
Pakistan has begun moving out of severe economic stress as key indicators stabilise, an IMF tranche is secured and business friendly regulatory reforms are launched, signalling a gradual shift from crisis management to sustainable growth.
Speaking at the launch of the National Regulatory Reforms in Islamabad, Prime Minister Shehbaz Sharif said the country had emerged from a phase marked by near-default conditions, soaring inflation, high interest rates and weak investor confidence. He highlighted the approval of a $1.2 billion IMF tranche as a major confidence booster, noting that consistent efforts over the past year and a half had helped restore macroeconomic stability.
“The economy we inherited was under extreme pressure, making investment and business activity difficult,” he said, adding that recent improvements now allow the government to focus on growth-oriented policies.
The prime minister said excessive regulations had long burdened businesses and encouraged delays and discretion. Under the new framework, procedures will be simplified to reduce costs, improve transparency and curb corruption. He said the reforms would strengthen local industry, agriculture and foreign direct investment, particularly from Europe, the Middle East and East Asia, while saving time and resources through better coordination between federal and provincial governments.
Growth Sectors and Youth Development
The government is prioritising investment and productivity in agriculture, information technology, and mines and minerals, alongside expanded vocational training programmes with international certification. These initiatives aim to equip young people with skills for employment at home and abroad.
The prime minister appreciated support from international partners, including the United Kingdom, Saudi Arabia and the United States, and expressed optimism about deeper future cooperation.
Shift Toward a Developmental State
Prime Minister’s Special Assistant Haroon Akhtar described the reforms as a move from a regulatory to a developmental state, driven by tariff rationalisation, regulatory modernisation and export led industrial growth to improve predictability and competitiveness.
UK Minister of State for International Development Baroness Jenny Chapman said Pakistan’s entrepreneurial base, natural resources and strategic trade position gave it strong potential. She noted that UK-Pakistan bilateral trade stands at £5.5 billion annually, with a new trade dialogue underway to strengthen investment ties, including engagement with the Pakistani diaspora.
