DAVOS, Wednesday, January 21, 2026 (WNP): Prime Minister Muhammad Shehbaz Sharif on Wednesday highlighted Pakistan’s improving economic outlook, citing sharp reductions in inflation, easing monetary policy, and accelerating export-led growth as key indicators of renewed stability and confidence.
Addressing the Pakistan Breakfast at the Pakistan Pavilion on the sidelines of the 56th Annual Meeting of the World Economic Forum, the prime minister said inflation had declined significantly from nearly 30 percent to around 5.5 percent, while the policy interest rate had been reduced from 22.5 percent to 10.5 percent. He noted that Pakistan’s information technology exports were gaining momentum due to supportive government measures.
The prime minister said structural reforms and digitization had helped raise the tax-to-GDP ratio to 10.5 percent, strengthening fiscal sustainability. He added that agriculture exports, along with the mines and minerals sector, were showing encouraging progress through international partnerships, while rapid advancements were being made in information technology, artificial intelligence and other emerging technologies.
“Export-led growth has been identified as the future pathway for Pakistan’s economic stability and development,” he said, emphasizing the government’s focus on competitiveness and value addition.
Highlighting human capital as a central pillar of growth, Prime Minister Shehbaz said Pakistan’s large youth population represented both a challenge and a major opportunity. He said the federal and provincial governments had launched wide-ranging initiatives to empower young people through vocational and technical training. At the federal level, he noted, the National Vocational and Technical Training Commission (NAVTTC) was providing modern, market-relevant skills through programs vetted by third-party audits and supported by international certification.
The prime minister said cooperation was expanding in key areas including mining and minerals, counter-terrorism, IT and artificial intelligence, adding that Pakistan was well-positioned for rapid progress across agriculture, industry, mining and the digital economy. “The future of Pakistan is very promising,” he remarked.
Addressing governance and reform, Prime Minister Shehbaz stressed that the government was moving forward with complete transparency and accountability. He said Pakistan International Airlines had been privatized through an open and transparent process, visible to both the nation and the international community, describing it as a hallmark of credibility and reform.
He said preparations were underway for further privatization in the airports, power sector, electricity distribution companies and transmission lines. The prime minister added that strict adherence to the IMF-supported program had helped restore confidence and positioned Pakistan as a potential success story for other developing economies seeking stability through difficult reforms.
Referring to his meeting with IMF Managing Director Kristalina Georgieva, the prime minister said discussions would focus on Pakistan’s economic achievements, structural reforms and privatization agenda. He noted that several loss-making state-owned entities, including Utility Stores Corporation, PASSCO and the Public Works Department, had been closed, saving billions of rupees and ending long-standing fiscal drains.
“Despite pressures, the government remained firm to protect the economy and the public interest,” he said, adding that the reform process reflected collective effort, close coordination and a commitment to long-term stability and sustainable growth.
The address underscored Pakistan’s bid to re-engage global investors and partners, presenting the country’s reform momentum as a foundation for durable growth and economic resilience.
