PM Shehbaz says third Budget to accelerate growth as economy stabilises

ISLAMABAD, Jun 12 (APP): Prime Minister Shehbaz Sharif on Friday said Pakistan’s economy had achieved stability despite multiple challenges and expressed confidence that the federal government’s third budget would set the economy on a faster growth trajectory.

Addressing a special meeting of the federal cabinet convened to approve the federal budget, the prime minister said the government had successfully navigated difficult economic circumstances and laid the foundation for sustainable development.

He paid tribute to the nation for enduring economic hardships and inflation over the past two years, saying the patience shown by Pakistan’s 240 million people had played a vital role in the country’s economic recovery.

The prime minister said the first two budgets of the current government were framed in line with national requirements and commitments made under the International Monetary Fund (IMF) programme, which necessitated difficult fiscal measures, including additional taxation, to stabilise an economy that had been facing prolonged uncertainty.

“We are fully aware of the difficulties faced by ordinary citizens. However, through consistent efforts over the last two years, inflation has come down from 38 per cent to single digits, while the policy rate has been reduced from 22.5 per cent to 11 per cent,” he said.

Sharif noted that regional and international developments, including tensions in the Gulf region, had created additional challenges, but Pakistan had remained on the path of economic stability. He said key economic indicators were improving and voiced optimism that the new budget would further strengthen growth and investment.

Earlier, the prime minister informed the cabinet that he had attended the funeral prayers of military personnel martyred in a recent helicopter crash. He said the tragic incident, which also claimed the lives of two Christian brothers, had left the entire nation grief-stricken.

“These sacrifices will not go in vain. Terrorism will ultimately be eradicated from Pakistan,” he said.

Highlighting future priorities, the prime minister stressed the need to expand investment in renewable energy sources, including solar, wind and battery storage technologies, while also focusing on the construction of water reservoirs and dams to strengthen the country’s long-term energy and water security.

PM Sharif said the preparation of the budget had involved extensive consultations with the provinces and thanked provincial governments for their cooperation. He said meaningful discussions on economic targets and resource requirements had reflected a spirit of national unity and collective responsibility.

The prime minister particularly acknowledged the support of Punjab Chief Minister Maryam Nawaz and appreciated the efforts of former prime minister Nawaz Sharif in promoting coordination between the federal and Punjab governments.

He also thanked President Asif Ali Zardari and Pakistan Peoples Party Chairman Bilawal Bhutto Zardari for their constructive role, as well as the chief ministers of Balochistan and Khyber Pakhtunkhwa for cooperating with the federation on fiscal matters.

The prime minister said the provinces had demonstrated generosity and national commitment in discussions regarding the federation’s financial needs, describing the cooperation as a strong example of national cohesion and solidarity.

The prime minister commended the federal government’s economic team for its hard work in negotiations with the IMF and revealed that he had personally spoken with the IMF Managing Director, who appreciated Pakistan’s economic performance and acknowledged the government’s reform efforts.

Expressing confidence in the country’s future, he said the government’s economic policies would ultimately lead to prosperity and improved living standards for the people of Pakistan.

Briefing the cabinet on his recent visit to China, Sharif said detailed discussions had been held on the implementation of the second phase of the China-Pakistan Economic Corridor (CPEC), with both sides agreeing to focus on four key areas of cooperation.

The prime minister also thanked coalition partners, including the Pakistan Peoples Party, Balochistan Awami Party, National Party and Muttahida Qaumi Movement-Pakistan, for their continued support to the government.