KARACHI: Prime Minister Shehbaz Sharif on Wednesday emphasized the importance of increasing tax revenues to strengthen Pakistan’s economy, which he says is recovering and moving towards sustained growth.
Speaking at the Pakistan Stock Exchange (PSX) during a day-long visit to Karachi, he highlighted the government’s efforts to meet tax targets despite challenges.
The prime minister noted that Pakistan’s tax-to-GDP ratio has improved to 10.8%, surpassing the IMF’s target of 10.6%, but acknowledged that more work is needed. “This is not enough — we must continue pushing forward to expand our tax base and increase revenue,” he said.
PM Shehbaz stressed the importance of collective efforts, urging the private sector to play a larger role in boosting the economy.
He reaffirmed the government’s commitment to honoring its obligations under the IMF program but hinted at a future free from IMF reliance. “We need to honour IMF commitments — we can’t just say tata bye bye. We will say goodbye to the IMF forever, but when the time comes,” he stated.
The prime minister highlighted that tax targets for the next six months are clear and achievable through diligent efforts.
PM Shehbaz also addressed the importance of creating a favorable business environment by lowering interest rates, which have already dropped to 13%, to further reduce them to 6%. However, he cautioned that such changes must be implemented with prudence to avoid economic risks.
While praising the PSX for its exceptional performance in 2024, when it was recognized as the world’s second-best-performing stock exchange, he stressed the need to sustain this momentum. The KSE-100 Index surged by 85% in PKR terms last year, yet the market remains below its 2017 peak.
The prime minister assured transparency in ongoing privatization efforts, including those for Pakistan International Airlines (PIA) and Islamabad Airport. He called on experienced economists to provide actionable recommendations for achieving export-led growth and attracting foreign direct investment.
“We need to convert stability into economic growth. That is our main challenge,” PM Shehbaz remarked, adding that the journey towards growth requires careful planning and collaboration.
During his visit, the prime minister inaugurated the Federal Board of Revenue’s Faceless Customs Assessment System at Karachi Port Trust to enhance transparency in customs operations. He also emphasized the importance of continuing reforms to sustain economic recovery and ensure long-term stability.
