PM calls for growth incentives as Pakistan looks beyond economic stabilisation

Prime Minister Shehbaz Sharif on Wednesday called for the introduction of targeted incentives to stimulate economic growth, stressing that Pakistan must now focus on expanding exports, reviving manufacturing and creating jobs after achieving macroeconomic stability.

Addressing a meeting of the National Economic Council (NEC), the country's highest constitutional forum for economic planning and coordination, the prime minister said the economy had reached a more stable footing but required stronger growth momentum.

He said the next phase of economic management should prioritise employment generation, higher production, increased exports and faster economic activity to accelerate gross domestic product (GDP) growth.

The prime minister noted that Pakistan had remained compliant with International Monetary Fund (IMF) conditions despite geopolitical tensions that triggered a sharp rise in global energy prices.

Shehbaz also revealed that he held a detailed discussion with IMF Managing Director Kristalina Georgieva on Tuesday, saying she appreciated Pakistan's efforts to stabilise the economy and pursue reforms.

Highlighting the need for coordinated policymaking, the premier said the federal government had remained engaged with provincial governments for weeks in consultations over the upcoming federal budget.

He credited cooperation between the federation and provinces for helping the country reach its current economic position and emphasised that continued coordination would be necessary to sustain progress.

The prime minister also described national security and counterterrorism as immediate priorities, saying the government remained committed to strengthening the country's defences and eliminating terrorism.

To achieve higher economic growth, he said Pakistan must introduce incentives that encourage export-led expansion, support industrial activity and help transform the broader economy.

Chief ministers from all four provinces attended the NEC meeting.

The council session was originally scheduled for May 22 but was postponed twice before being held on Wednesday.