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KARACHI, Oct 09 (APP):Advisor to the Federal Finance Minister, Khurram Shehzad on Thursday said Pakistan’s economy had decisively turned a corner and is now firmly on the path to recovery and sustainable growth.
Addressing in the Management Association of Pakistan’s annual conference titled “Leading Change: From Vision to Excellence”, Khurram emphasized that comprehensive reforms and decisive policy actions by the government have started yielding tangible results.
He pointed to a sharp decline in inflation, a significant reduction in interest rates, and major improvements in the tax system as key milestones in the country’s economic turnaround.
He said the government has successfully steered the economy in the right direction. Inflation is down, interest rates are now at 12%, and our tax system is being overhauled to ensure equity and efficiency,” he said.
Shehzad underscored that high interest rates had previously stifled industrial activity and investment, but the easing of monetary policy is now creating an enabling environment for business expansion and job creation.
“Industries now find it easier to invest and access capital. This will not only spur economic activity but also generate employment at a much-needed scale,” he stated.
Highlighting the government’s unwavering commitment to structural reforms, Khurram Shehzad revealed that fiscal discipline is being reinforced through privatization and public sector restructuring. The government is also working to ensure a fairer tax regime, including enhanced efforts to tax the agricultural sector — a move agreed upon by all four provinces, which he hailed as a landmark achievement.
He said that the first time, provinces have placed the economy above politics by supporting agricultural income tax reforms. This is a significant breakthrough.
He further noted that the debt-to-GDP ratio, a key indicator of fiscal health, has improved considerably — dropping from 77% in FY2020 to under 70% in FY2025. International financial institutions have taken note of Pakistan’s progress, with multiple global agencies affirming the country’s positive trajectory, he asserted.
“All key economic indicators are moving in the right direction — and the world is watching. Confidence is returning, and this is translating into increased interest from foreign investors,” Shehzad added.
The advisor reaffirmed that the government is resolute in creating a conducive environment for both local and international investment, and reiterated that long-term economic transformation will only be possible through continued structural reforms, fiscal prudence, and transparent governance.