Here’s What IMF Chief Now Thinks About Pakistan

Prime Minister Shehbaz Sharif addressed the International Monetary Fund (IMF) chief, who characterized Pakistan as a "new Pakistan," responding that it was "not a new Pakistan; it is a new team." At a ceremony celebrating the REIT listing of Naya Nazimabad Apartments on the Pakistan Stock Exchange, the prime minister emphasized that Pakistan requires a shift towards export-driven growth and pointed out the shortcomings of industries that have benefited from government subsidies for decades without resulting in substantial export increases.

He noted that several sectors have received subsidies since the 1960s but have failed to meaningfully boost exports, leading to price increases, deteriorated quality, productivity issues, and the inability to achieve import substitution. Shehbaz stressed that acknowledging this harsh reality is crucial for progress, urging exporters to contribute to sustainable export-led growth.

Incentives for the construction industry are showing positive results, especially in Karachi, and the government has provided Rs. 2.3 trillion in tax breaks to stimulate economic activity. International bankers in the United States and United Kingdom have commended the government's reform efforts. The prime minister called for maintaining this momentum by prioritizing exports and sustainable growth. He also acknowledged the significant progress made in Eurobond issuance.