PM Shehbaz Stresses Tax Revenue Growth and Economic Recovery

Prime Minister Shehbaz Sharif on Wednesday stressed the need to boost tax revenues for strengthening Pakistan’s economy, which he says is on a path to sustained growth.

During a visit to the Pakistan Stock Exchange (PSX) in Karachi, he acknowledged the government’s efforts to meet tax targets despite hurdles. He noted that the tax-to-GDP ratio has improved to 10.8%, exceeding the IMF’s 10.6% target, but stressed the need for further progress to expand the tax base.

Calling for collective efforts, the prime minister urged the private sector to play a larger role in economic development. He reaffirmed the government’s commitment to honoring IMF obligations but expressed hope for eventual independence from IMF reliance.

“We need to honor our commitments to the IMF, but we will say goodbye to the IMF forever when the time comes,” he stated.

PM Shehbaz highlighted the importance of creating a favorable business environment, including lowering interest rates from the current 13% to 6% over time. However, he cautioned against hasty moves that might destabilize the economy.

He praised the PSX for being the world’s second-best-performing stock exchange in 2024, with the KSE-100 Index surging 85% in PKR terms. However, he noted the market has yet to surpass its 2017 peak and emphasized sustaining this momentum.

The prime minister assured transparency in privatization efforts, including those of PIA and Islamabad Airport. He also called on economists to propose strategies for export-led growth and attracting foreign investment.

“Increasing stability into sustained economic growth is our main challenge,” he remarked, stressing the importance of collaboration and strategic planning.

During his Karachi visit, PM Shehbaz inaugurated the FBR’s Faceless Customs Assessment System at Karachi Port Trust to enhance transparency. He underlined the need for continued reforms to maintain economic recovery and long-term stability.