ISLAMABAD: Prime Minister Shehbaz Sharif said on Thursday that Pakistan would now pursue export-led and sustainable economic growth, arguing the economy had been stabilised after a difficult period.
He was speaking virtually at a gong ceremony organised by Arif Habib Corporation at the Pakistan Stock Exchange in Karachi. Finance Minister Muhammad Aurangzeb also addressed the event at the PSX Trading Hall, where he laid out the government’s reform agenda for public finances and capital markets.
Shehbaz said successive governments had extended substantial incentives and support to export-oriented industries. He added that some industries had still failed to produce the expected results despite decades of state assistance.
“I do not want to name the export industries that have failed to deliver,” the prime minister said. He urged exporters to raise their performance and contribute to durable growth, noting that the prices of their products had gone up while quality had deteriorated.
Aurangzeb sets out reform roadmap
Aurangzeb said the government was implementing reforms agreed under the International Monetary Fund’s Extended Fund Facility, with an emphasis on fiscal discipline. He said the state wanted to shift its borrowing away from commercial banks and towards non-bank sources and retail investors.
He told the audience that the Capital Market Development Council was examining measures covering venture capital, Islamic bonds known as Sukuk, and real estate investment trusts. The government was also reviewing taxation and regulatory rules to widen and deepen Pakistan’s capital markets.
The council includes the State Bank governor, the chairman of the Securities and Exchange Commission of Pakistan and other stakeholders. It will submit its recommendations to the Prime Minister’s Office, the State Bank, the SECP and the Finance Ministry before the end of the year. The SECP is separately preparing a legislative agenda for Parliament, as required under the IMF programme.
Growth outlook and tax filers
The finance minister projected the economy would expand by 4 per cent in fiscal year 2026-27, compared with 3.7 per cent in the previous year. He cautioned that consumption-driven growth could push the rate as high as 6 per cent, but warned it would also widen external imbalances and risk another balance-of-payments crisis that could force Pakistan back to the IMF.
He said the government would therefore depend on exports to generate sustainable growth.
Aurangzeb added that the number of registered tax filers had risen to more than 5.7 million, up from about 3.9 million a year earlier, an increase of roughly 45 per cent.
What is Pakistan’s growth target for FY27?
The finance minister has projected 4 per cent GDP growth for fiscal year 2026-27, up from 3.7 per cent in the previous fiscal year.
What did Shehbaz Sharif say about export industries?
He said successive governments had given exporters substantial incentives, but some industries had failed to deliver results despite decades of support, and he urged them to improve performance.
How many tax filers does Pakistan have now?
Registered tax filers have risen to more than 5.7 million, up from about 3.9 million a year earlier.
