Prime Minister Shehbaz Sharif has reiterated his government’s commitment to tackling Pakistan’s economic challenges, particularly the high energy costs affecting the industrial and agricultural sectors. Speaking at a ceremony in Islamabad, he outlined a series of measures aimed at reducing power tariffs, promoting industrial growth, and attracting foreign investment.
Addressing High Energy Costs
Acknowledging the burden of escalating power tariffs, the prime minister emphasized the government’s efforts to lower energy costs. He stated that a competitive industrial sector is crucial for economic growth and that easing the cost of doing business is a top priority.
In response to widespread concerns, the government has taken significant steps to address power purchase agreements (PPAs) with independent power producers (IPPs). These include settlement agreements with eight bagasse-based IPPs, such as DW Unit I, Unit II, and Chiniot Power, which are expected to save the national exchequer Rs238 billion. Additionally, the government announced the premature termination of agreements with five older IPPs, resulting in annual savings of Rs60 billion and cumulative savings of Rs411 billion over the remaining contract terms.
Economic Revival Initiatives
Prime Minister Shehbaz Sharif highlighted several initiatives to revive the economy. He noted the government’s success in reducing inflation to below 5% and maintaining a banking policy rate under 13%, creating a more favorable environment for businesses.
Exports, particularly in the IT sector, have seen significant growth, and the government is committed to supporting these industries. Efforts are also underway to develop agriculture, industry, and mining sectors to unlock the country’s economic potential.
Privatisation of Public Entities
As part of a broader effort to reduce government expenses, the prime minister announced plans to privatize Pakistan International Airlines (PIA). Drawing inspiration from the successful privatization of banks in the 1990s under then-prime minister Nawaz Sharif, he expressed confidence that PIA could once again become a world-class airline.
He invited Pakistani investors to participate in a transparent bidding process, emphasizing that the transformation of PIA is a key component of the government’s economic strategy.
Encouraging Foreign Investment
To attract foreign investment, the government is working to eliminate barriers and improve the ease of doing business. These initiatives aim to enhance Pakistan’s competitiveness and create opportunities for entrepreneurs and businesses.
IMF Program and Fiscal Discipline
The prime minister assured that Pakistan is on track to conclude its final IMF program. He highlighted the government’s commitment to maintaining fiscal discipline and fulfilling its financial obligations as a cornerstone of economic stabilization.
A Vision for Progress
In his address, PM Shehbaz Sharif expressed optimism about the country’s future, emphasizing the collective efforts of stakeholders and citizens in rebuilding Pakistan. He called on the nation to unite in working toward sustainable growth and development.
The government’s roadmap for economic revival, including energy reforms, privatisation of PIA, and initiatives to attract foreign investment, reflects a comprehensive approach to addressing Pakistan’s challenges. These measures aim to stabilize the economy, create opportunities, and lay the foundation for a prosperous future.
Through collective efforts, Pakistan is poised to reclaim its position as a thriving and competitive nation on the global stage.