PM Shehbaz says Pakistan out of economic crisis as govt launches regulatory reforms

Prime Minister Shehbaz Sharif on Saturday said Pakistan has moved out of a period of acute economic stress, citing improvements in key macroeconomic indicators and the approval of a $1.2 billion tranche by the International Monetary Fund.

Speaking at the launch ceremony of the National Regulatory Reforms in Islamabad, the prime minister said the government inherited an economy close to default, marked by high inflation, elevated interest rates and weak investor confidence. He said those conditions had made both domestic and foreign investment difficult and disrupted business activity across the country.

He said sustained efforts by the government and its economic team over the past year and a half had helped stabilise the economy and shift the focus toward growth. The prime minister said the administration was now concentrating on expanding investment and improving productivity in sectors such as agriculture, information technology, and mines and minerals.

Referring to the launch of the regulatory reforms, the prime minister said excessive rules and procedures had previously burdened businesses and weakened the overall economic environment. He said the new framework would simplify processes, reduce delays and help curb corruption by limiting discretionary powers.

He said the reforms would support local industry, agriculture and foreign direct investment, particularly from Europe, the Middle East and East Asia, while reducing wastage of time and resources. He added that coordination between the federal and provincial governments had been central to the reform process.

The prime minister also highlighted government initiatives focused on youth development, saying vocational training programmes with international certification were being expanded to help young people secure employment in Pakistan and abroad.

He thanked the British government and UK International Development for their support and said Pakistan valued its partnerships with the United Kingdom, Saudi Arabia and the United States, expressing optimism about future cooperation.

Addressing the event, Prime Minister’s Special Assistant Haroon Akhtar said the regulatory reforms marked a shift from a regulatory state to a developmental state. He said the changes were part of a broader strategy based on tariff rationalisation, regulatory modernisation and export-led industrial growth, with the aim of improving predictability and competitiveness.

UK Minister of State for International Development Baroness Jenny Chapman said Pakistan had significant potential due to its entrepreneurial base, natural resources and strategic trade position. She said bilateral trade between the UK and Pakistan stood at £5.5 billion annually and that both countries were working through a new trade dialogue to strengthen investment ties, including engagement with the Pakistani diaspora in the UK.