Economic stability key to long-term growth: Khurram Schehzad

July 18, 2025 (MLN): The government reaffirmed its commitment to sustaining the momentum of recent economic reforms, with Advisor to the Finance Minister Khurram Schehzad emphasizing the goal of ensuring long-term economic resilience and laying the foundation for a progressive, sustainable future.

In a video message received here, Schehzad stated that the macro-economic indicators were showing resilience due to the reforms introduced by the incumbent government.

Inflation reached its lowest level in three years, declining from 23.4% last year to 4.5% during the current fiscal year.

He noted that food inflation during the fiscal year 2025 decreased by 0.6%, standing at 21% compared to the same period last year.

Core inflation also declined to 9.6%, down from 18.9% recorded previously.

The advisor informed that per-capita income grew by 10% over the last fiscal year, reaching $1,824.

Interest rates also dropped significantly during the fiscal year 2025, now standing at 11% compared to 22% in the previous year.

Highlighting measures in the current federal budget, Schehzad said the government introduced tax relief initiatives for salaried and corporate sectors.

Special allocations were made for the uplift of the agriculture and livestock sectors to enhance the income of small-scale farmers and alleviate poverty.

He added that the government focused on digital financing, SME development, and youth empowerment.

Tariff reforms were introduced to promote industrial development and achieve export-led growth.

On environmental challenges, Schehzad stated that agreements had been signed with multilateral partners and agencies to secure climate financing.

Under the reform agenda, the government has initiated right-sizing of the federal government, energy sector reforms, privatization of loss-making state-owned enterprises, and other fiscal reforms aimed at sustainable and inclusive growth.

The advisor emphasized the importance of the agriculture sector, describing it as the backbone of the national economy.

He said agriculture financing had increased by 16%, while private sector credit expanded by 38%, reaching Rs710 billion.

He further mentioned that the government had taken steps to address circular debt issues and reduced electricity prices for household and industrial sectors.

As a result of these measures, the Federal Board of Revenue's tax collection rose by 26% year-on-year, and a primary surplus was achieved.

“Pakistan’s reform momentum is real and it’s just getting started,” Schehzad said, adding that the economic scorecard reflects the groundwork for fiscal discipline, investment climate improvement, and structural transformation.

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