ISLAMABAD: Despite numerous economic challenges that still need to be tackled, Prime Minister Shehbaz Sharif on Tuesday painted a rosy picture of the economy, asserting that despite facing significant hurdles, particularly in relation to the International Monetary Fund (IMF) programme, the economy – once fragile – has been stabilised within just a year.

During a special cabinet meeting convened to mark his government’s first year in office, the prime minister said that the economy is back on track, noting it could not have been possible without “my tireless efforts and the support of Chief of Army Staff (COAS) Gen Asim Munir.”

Sharif commended COAS Munir, stating that he and the army chief had to visit friendly countries to address issues hindering the IMF programme, which led to economic stability within a short span of one year.

PM Shehbaz Sharif chairs a review meeting regarding his recent visit to Azerbaijan

He emphasised that the efforts were instrumental in preventing Pakistan from defaulting and in improving the nation’s economic indicators.

“Our government has successfully completed one year, and despite encountering opposition, we have remained free from any scandals. Our momentum will persist, and our commitment to national development will remain unwavering in the face of extremist factions,” he declared.

He emphasised that the government’s Ramadan package was increased substantially from Rs7 billion last year to Rs20 billion this year, adding the package will benefit four million families nationwide, including those in Gilgit-Baltistan and Azad Kashmir.

Sharif pointed out that a year ago, Pakistan was on the verge of default due to its economic situation. In an obvious reference to jailed former prime minister Imran Khan, he said that certain individuals were writing letters to the IMF in an attempt to sabotage the talks with the Fund, describing it as an act of betrayal towards the country.

He also said that the positive evaluations of Pakistan’s macroeconomic indicators by World Bank and other international financial institutions are a testimony that economy is on the right direction.

He expressed gratitude to the allies and institutions for helping the country navigate through challenging times, and noted that Pakistan is now on the path to economic recovery.

He also discussed the teamwork that played a crucial role in finalising an agreement with the IMF, which involved seeking support from friendly nations to bridge a $5 billion gap.

He also highlighted the recent increase in Pakistan’s oil facilitation agreement with Saudi Arabia and the UAE, which offered crucial financial assistance.

He maintained that all the macroeconomic indicators were strong and urged the cabinet members to work diligently and with dedication, as these were essential for achieving the goal of making Pakistan a one trillion dollar economy by 2035.

“The cornerstone of our achievements has been collaboration. We need to maintain our teamwork and avoid sabotaging each other to shape Pakistan’s future,” he added.

The prime minister emphasised the government’s focus on achieving economic stability and expressed optimism that Rs400 billion tax cases currently pending before different courts would be resolved soon, citing the recent decision by the Sindh High Court that saved the national kitty with Rs23 billion.

He stressed the need for addressing Rs850 billion losses from state-owned enterprises, referring to them as a “bottomless pit” that must be addressed. Additionally, he highlighted the importance of resolving the circular debt in the power sector.

In the same breath, Sharif also vowed to root out the menace of terrorism from the country to attract foreign investment.

He said that the journey was marked by challenges and difficulties, but they were determined to move forward towards progress and prosperity.

He also stated that Pakistan would soon launch its first joint astronaut mission in collaboration with China.

Meanwhile, Minister for Finance Muhammad Aurangzeb said that the country’s fragile economy has now stabilised, with structural reforms being implemented alongside this stability.

The minister provided an overview of the economy, highlighting that Pakistan Stock Exchange had seen a 71 percent increase in returns and the current account surplus was at its highest level in the last 20 years.

He said that plans are in place for the rightsizing of 43 ministries and their 400 attached departments, along with the introduction of pension reforms and agriculture tax for the first time.

The minister also stated that decisions regarding all ministries and attached departments will be made by the end of the fiscal year, and by December, the IMF’s specified target for tax revenue as a percentage of GDP will be exceeded.

The goal is to bring the tax rate relative to GDP to 13.5 percent in the next four years, adding that the Federal Board of Revenue (FBR) revenue had increased by 26 percent, and the introduction of the faceless assessment system had led to a 60 percent revenue increase in a short period.

He said that international monetary institutions have praised the economic achievements of the current government in Pakistan.

Deputy Prime Ishaq Dar reflected on the progress made during the tenure of Nawaz Sharif, noting that Pakistan’s economy was ranked 24th, when Sharif was the prime minister.

Despite facing economic challenges when we came into power, he added, due to the government’s solid direction and economic policies, economic stability was achieved.

Dar also said that Pakistan has overcome diplomatic isolation and become a member of the United Nations Security Council (UNSC) for 2025-26.

He expressed confidence in eliminating terrorism from the country through the Azm-e-Istehkam operation.

He also highlighted the significant investments from countries like Saudi Arabia, UAE, Azerbaijan, and other countries, saying it will strengthen Pakistan’s economy.

Dar also emphasised Pakistan’s humanitarian aid efforts in Gaza, saying the country will continue to support their Palestinian brethren at this testing time.

Minister for Power Awais Leghari provided details on comprehensive reforms in the power sector, resulting in a reduction of Rs151 billion in industrial cross subsidies.

Defence Minister Khawaja Asif emphasised the ongoing development in all institutions due to government actions and criticised the opposition Pakistan Tehreek-e-Insaf (PTI) for spreading chaos under the guise of criticism.

Federal Minister for Planning and Development Ahsan Iqbal highlighted the progress on the Uraan Pakistan project and the influx of foreign investment due to the China-Pakistan Economic Corridor (CPEC).

He also mentioned the efforts to save the country from default and the setbacks faced by the CPEC project in 2018.

Federal Minister for IT and Telecommunications Shaza Fatima Khawaja said that efforts are being made to provide IT facilities in remote areas and the increase in IT exports in the country.

She also mentioned the improvements in internet speed through laying submarine cables.

In conclusion, the cabinet ministers of Sharif administration reiterated their commitment to economic stability, development, and the elimination of terrorism in Pakistan.