DAVOS, January 21, 2026 — Pakistan’s economy is showing clear signs of improvement, with key economic indicators strengthening and growth momentum building, Prime Minister Shehbaz Sharif said on Wednesday at the Pakistan Pavilion during the 56th Annual Meetings of the World Economic Forum in Davos.
Addressing business leaders and international delegates, the prime minister highlighted that Pakistan had achieved macroeconomic stability after implementing tough but necessary reforms and was now focused on export-led growth and sustainable development.
Inflation and Policy Rate See Sharp Improvement
“Our inflation has come down sharply from 30 percent to 5.5 percent, while the policy rate has been reduced from 22.5 percent to 10.5 percent,” PM Sharif said, attributing the improvement to disciplined economic management. He also noted that IT exports had grown significantly, now reaching approximately $3 billion annually through offshore channels.
Export-Led Growth and Tax Reforms
Highlighting the government’s long-term strategy, PM Sharif emphasized that Pakistan must pursue export-led growth. He said reforms in revenue collection were central to this approach, with the tax-to-GDP ratio rising to 10.5 percent from 9 percent in recent years due to digitization of the tax system.
The prime minister also pointed out sectoral opportunities, noting strong performance in agricultural exports and emerging potential in mining and minerals, with agreements signed with American and Chinese companies to exploit untapped resources in Gilgit-Baltistan, Azad Jammu and Kashmir, Khyber Pakhtunkhwa, and Balochistan.
Youth Empowerment and Emerging Industries
PM Sharif highlighted Pakistan’s push into information technology, artificial intelligence, and crypto, noting the country’s large youth population as both a challenge and an opportunity. Federal and provincial programs, including those run by the National Vocational and Technical Training Commission (NVTTC), are providing vocational and technical training to prepare youth for productive employment in Pakistan and abroad.
Strengthening Foreign Relations and Privatization
The prime minister noted that Pakistan continues to enjoy strong economic ties with China and is expanding cooperation with the United States in sectors such as mining, technology, and counterterrorism. He also emphasized transparent privatization efforts, including the privatization of Pakistan International Airlines, airports, and power distribution and transmission companies.
IMF Program and Structural Reforms
Regarding Pakistan’s IMF program, PM Sharif said the country had adhered to all conditions in letter and spirit, with the Fund now citing Pakistan as a success story for developing countries. He also highlighted structural reforms, including the closure of loss-making state entities like Utility Stores Corporation, PASSCO, and PWD, saving billions of rupees despite resistance from vested interests.
“We are at a point where Pakistan is about to take off,” PM Sharif said, stressing unity, transparency, and sustained reforms as essential to achieving long-term growth and prosperity.