ISLAMABAD: Prime Minister Shehbaz Sharif has expressed strong optimism regarding the resolution of pending tax cases worth Rs 400 billion, citing a recent Sindh High Court ruling that granted a significant relief of Rs 23 billion to the government. He emphasized that these legal victories would contribute to strengthening Pakistan’s financial stability.
Addressing a recent cabinet meeting, Shehbaz highlighted the government’s strides in economic reforms and governance improvements over the past year. Notably, he pointed out the successful implementation of e-governance, the digitalisation of the Federal Board of Revenue (FBR), and the remarkable improvement in foreign exchange reserves, which surged from a precarious $4 billion to a much healthier $12 billion.
Despite these achievements, Shehbaz acknowledged the persistent challenge posed by state-owned enterprises (SOEs), which he described as “bottomless pits” due to their cumulative losses amounting to Rs850 billion. He stressed the urgent need for structural overhauls within these entities to enhance efficiency and curb financial wastage.
Discussing Pakistan’s economic trajectory, the premier reiterated that the elimination of terrorism was crucial for attracting investment. He asserted that once security concerns were addressed, Pakistan would regain its lost economic stature on the global stage. He also underscored that for the first time in Pakistan’s history, all state institutions were aligned and working collectively towards national prosperity.
Shehbaz drew attention to the dire economic situation when his government assumed office, warning that Pakistan had been on the brink of financial collapse. However, through strategic measures and policy execution, his administration managed to steer the economy towards stability, avoiding a potential default.
He commended his cabinet and government officials for their contributions in achieving economic progress, highlighting key indicators such as a sharp decline in inflation, a reduction in policy rates, an increase in foreign remittances, a boost in foreign investment, and strengthened foreign exchange reserves. He stressed that sustained efforts were necessary to transition from economic stabilisation to long-term growth under the “Uraan Pakistan” programme. With continued policy consistency, he projected that Pakistan could become a $1 trillion economy by 2035.
The PM acknowledged Saudi Arabia’s extension of a $1.2 billion oil facility and the UAE’s rollover of $2 billion in financial support. He noted that friendly nations had helped arrange $5 billion to fulfill an IMF financing condition and credited the army chief for playing a crucial role in securing international financial assistance.
Shehbaz reiterated his government’s commitment to resolving all tax cases efficiently, ensuring that businesses operate under a fair and transparent legal framework. He emphasised that overcoming legal and financial hurdles would further solidify Pakistan’s economic foundation.
Despite prevailing challenges, Shehbaz remained steadfast in his belief that Pakistan was on the path to economic recovery and long-term stability. He called for a collective effort from all sectors to build a self-sufficient and thriving economy, free from excessive reliance on loans. With strategic policies and international cooperation, he reaffirmed, Pakistan could emerge as a formidable economic force in the coming decades.