Under the leadership of Prime Minister Mian Muhammad Shehbaz Sharif, Pakistan has witnessed remarkable progress on several fronts, with the country’s economic performance surpassing expectations and stabilizing after a period of uncertainty. From an economy teetering on the brink of default to one that is now experiencing growth and resilience, Shehbaz Sharif’s tenure has been marked by significant strides toward economic stability, fiscal responsibility, and long-term prosperity. His leadership has steered Pakistan through challenging times, with positive results that have garnered international attention.
Economic Resilience: From Default to Stability
When Shehbaz Sharif took office, Pakistan was facing unprecedented economic challenges. The country’s foreign exchange reserves were at critically low levels, inflation was soaring, and the threat of default loomed large. However, the prime minister’s prudent leadership and sound economic policies have helped steer the country away from the brink of disaster. One of the most notable achievements under his leadership is the stabilization of Pakistan’s economy.
Inflation, a major concern for the Pakistani population, has been significantly reduced. In a remarkable achievement, inflation in the country dropped to an 81-month low of 4.1%. This was a sharp contrast to the situation just a year earlier when inflation was recorded at an alarming 29.7% in December 2023. This dramatic decline in inflation has brought relief to the common man and restored faith in the government’s ability to manage the economy effectively.
Transitioning to Growth
In addition to controlling inflation, Prime Minister Shehbaz Sharif’s government has made significant progress in moving the economy from stability to growth. The first six months of fiscal year 2025 (FY25) saw the country making strides toward economic recovery. The growth trajectory, which had been stagnant for years, is now gaining momentum, thanks to a combination of strategic policies and fiscal discipline.
A key indicator of this recovery has been the impressive increase in remittances. In the first five months of FY25 alone, Pakistan saw remittances hit $15 billion. The prime minister’s economic vision, which emphasized strengthening ties with the Pakistani diaspora, has proven successful in driving these inflows. By the end of FY25, remittances are expected to reach $35 billion, further solidifying Pakistan’s financial position and providing the necessary capital to fuel growth.
Stock Market Success: A Global Phenomenon
Another shining example of Shehbaz Sharif’s successful economic stewardship is the performance of the Pakistan Stock Exchange (PSX). Under his leadership, the PSX has experienced its most positive level in 22 years. In a world where stock markets are often volatile, Pakistan’s stock exchange has outperformed expectations, ranking as the second-best performing stock exchange globally and the top performer in Asia.
This remarkable achievement reflects investor confidence in Pakistan’s economic prospects and the government’s ability to manage the country’s financial markets. The positive performance of the PSX is a key indicator of Pakistan’s economic recovery and the prime minister’s successful efforts to create an environment conducive to investment and growth.
Policy Adjustments and Fiscal Prudence
One of the key strategies employed by Shehbaz Sharif to ensure economic stability has been prudent fiscal and monetary policies. A notable success in this regard has been the historic reduction in the policy rate. The central bank’s decision to cut the policy rate from 22% to 13% has had a significant positive impact on the economy, particularly in terms of fostering business growth and reducing borrowing costs for individuals and businesses.
This reduction in the policy rate has not only helped stabilize the economy but has also contributed to easing the financial burden on Pakistani citizens, especially those with loans. By making it more affordable for businesses and individuals to access credit, the government has encouraged economic activity, which is essential for long-term growth.
Trade and Export Growth
Prime Minister Shehbaz Sharif’s government has also worked tirelessly to boost Pakistan’s exports, a critical component of any developing economy. In the first half of FY25, Pakistan’s exports increased by 10.52%, signaling an upward trajectory after years of stagnation. Exports play a vital role in earning foreign exchange, promoting industrial growth, and creating employment opportunities, all of which contribute to Pakistan’s economic health.
In December 2024, Pakistan’s annual exports saw a further increase of 0.67% compared to the previous year. Although modest, this growth demonstrates the government’s ability to steer the country’s trade sector in the right direction, despite global economic challenges.
Long-Term Vision: Uraan Pakistan
Prime Minister Shehbaz Sharif’s economic reforms and policies are not limited to short-term stabilization; he has laid out a comprehensive long-term vision for Pakistan’s economic future. Under the umbrella of the “Uraan Pakistan” initiative, the government has set ambitious goals for the country’s growth and development by 2035.
One of the primary goals of Uraan Pakistan is to transition to an export-driven economy. Over the next five years, the government aims to increase annual exports to $60 billion. This goal is part of a broader strategy to boost Pakistan’s global competitiveness and reduce its reliance on external borrowing.
Another major focus of the Uraan Pakistan initiative is the digital revolution. With the world rapidly transitioning to the digital age, Pakistan aims to harness the potential of technology and innovation. A key target under Uraan Pakistan is to grow the country’s information technology freelancing industry to $5 billion by 2028. To achieve this, the government plans to produce 200,000 IT graduates annually, equipping the youth with the skills needed to succeed in the digital economy.
In addition to economic growth and technological innovation, Uraan Pakistan also emphasizes environmental sustainability. The initiative includes targets to reduce greenhouse gas emissions by 50% over the next five years and increase the share of renewable energy in Pakistan’s energy mix to 10%. Furthermore, the program aims to expand cultivable land by 20% and improve water storage capacity by 10 million acre-feet, ensuring the country’s agricultural sector remains competitive and resilient to climate change.
A Transformative Leader
Prime Minister Mian Muhammad Shehbaz Sharif has demonstrated exceptional leadership in navigating Pakistan through one of the most challenging periods in its history. Under his guidance, the country has made remarkable strides in stabilizing its economy, managing inflation, boosting exports, and attracting investment. His leadership has provided hope for the future, as the government has laid out a clear path toward long-term growth and prosperity through the Uraan Pakistan initiative.
While challenges remain, the performance of Shehbaz Sharif’s government offers a promising outlook for Pakistan’s economic future. His commitment to reform, fiscal discipline, and sustainable growth is transforming the country into a more resilient and prosperous nation. With his continued leadership, Pakistan is poised to overcome its challenges and emerge as a strong, dynamic economy in the global arena.
