Pakistan signals reassuring economic indicators

January 22, 2026 (MLN): Pakistan’s macroeconomic indicators are reassuring, which reflects improving economic stability and the positive impact of ongoing reforms, as the country continues to move towards sustainable and export-led growth.

Prime Minister Shehbaz Sharif met International Monetary Fund Managing Director Kristalina Georgieva on the sidelines of the 56th Annual Meeting of the World Economic Forum in Davos, Switzerland.

The Prime Minister briefed her on improvements in key economic indicators, progress on institutional reforms, and the government’s efforts to ensure macroeconomic stability.

The IMF Managing Director acknowledged Pakistan’s reform efforts and emphasized the importance of maintaining the momentum of reforms to ensure long-term economic resilience.

Both sides also exchanged views on the global economic outlook, challenges faced by emerging economies, and the role of multilateral cooperation in safeguarding economic stability.

Further more, addressing the “Pakistan Breakfast” on the sidelines of the World Economic Forum, the Prime Minister expressed confidence that Pakistan is poised for rapid growth in agriculture, industry, mining, artificial intelligence, and information technology.

Highlighting the government’s sustained efforts, he said inflation has declined from around 30% to 5.5%, while the policy rate has been reduced from 22.5% to 10.5%, with IT exports showing significant progress, according to a press release issued.

Emphasizing export-led growth, the Prime Minister said the government has introduced structural reforms in the revenue collection system, improving the tax-to-GDP ratio to 10.5% from 9% a few years ago. He also noted that agricultural exports are on the rise.

He said Pakistan has signed agreements with American and Chinese companies and is moving forward at a fast pace in emerging sectors such as cryptocurrency, artificial intelligence, and information technology. He added that the government is extending all possible facilitation to boost IT exports, including training and certification initiatives.

The Prime Minister further said Pakistan enjoys strong economic ties with China and the United States and expressed hope for enhanced cooperation in mines and minerals, counter-terrorism, information technology, and artificial intelligence.

He added that the government is actively encouraging private sector participation and recently completed the privatization of Pakistan International Airlines in a transparent manner and plans are underway to outsource airports and privatize power distribution companies and transmission lines as part of broader economic reforms.

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