ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday emphasised that economic development is directly linked with political stability because the strength of a country’s economy is deeply rooted in its political framework.

Chairing a meeting of the Special Investment Facilitation Council (SIFC), he said Pakistan’s macroeconomic indicators had significantly improved and expressed the confidence that 2025 would bring prosperity and growth to the country.

For the first time since 2018, the inflation rate has dropped to 4.1 per cent, foreign remittances have posted an increase of 34pc, exports have also jumped, and foreign exchange reserves went up to $12.5 billion from $4bn, noted the PM, adding that the policy rate — which is now at 13pc — had space of a further fall of 8pc keeping in view the inflation rate.

As regards foreign investment, he said memoranda of understanding worth billions of dollars had been signed with Saudi Arabia, Qatar and UAE.

Chairs SIFC meeting; asserts law enforcers fully ready to thwart terrorists’ designs

He said that having achieved economic stability, the country had now entered the growth stage. “If we want to achieve economic development, then we will have to focus on export-led growth ...[because] we have no other option”.

PM Shehbaz appreciated the efforts of Federal Board of Revenue and his economic team for collecting an additional Rs72bn under ADR (advance-to-tax ratio) due to which the government’s target of tax revenue for December 2024 had almost been achieved.

He noted that due to the faceless interaction facility, 39pc time duration of container inspection had been reduced while businessmen had got a relief of 89pc.

As regards terrorism in the country, the prime minister said that law enforcement agencies were fully committed to halting the nefarious designs of enemies. “Security has become a big challenge today and without crushing the menace of terrorism, we cannot move forward,” he said.

The PM congratulated all the stakeholders on reaching the agreement to normalise the situation in Kurram district.

He expressed deep grief over the loss of dozens of innocent lives in the area.

Moreover, he pointed out, sugar smuggling through Afghanistan had been reduced to zero which was a positive sign for the country’s economy.

He informed the meeting that national exchequer had received $0.5bn in term of sugar export while rice exports had posted $4bn.

Published in Dawn, January 3rd, 2025