Shehbaz Sharif said Pakistan’s inflation rate has dropped sharply from 29.2 percent to 4.5 percent over two years, crediting consistent government policies and difficult economic decisions. Addressing a reform ceremony in Islamabad, he said measurable progress restored confidence. He added that stability replaced uncertainty after a challenging economic phase.
The prime minister highlighted major fiscal gains, noting that more than one million new taxpayers were added to the tax net. As a result, tax revenues increased by 26 percent during 2025. He also said the tax-to-GDP ratio improved from nearly eight percent to above ten percent. These steps, he stressed, strengthened state finances.
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Shehbaz Sharif further said Pakistan’s current account deficit of 3.3 billion dollars turned into a surplus of 1.9 billion dollars. Meanwhile, foreign exchange reserves surged from 9.2 billion dollars to 21.2 billion dollars. He described this turnaround as critical for macroeconomic stability. According to him, global institutions also acknowledged these improvements.
The premier said long-delayed privatisation reforms were finally completed, including Pakistan International Airlines and First Women Bank. He recalled that the government inherited severe inflation, low reserves, and weak global standing. However, he maintained that tough reforms were unavoidable. He emphasized that no shortcuts or populist measures were adopted.
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Finance Minister Muhammad Aurangzeb said decisive steps helped stabilise the economy, lower inflation, and improve investor confidence. He stated that better fiscal planning saved between six hundred and seven hundred billion rupees. Despite major floods in 2025, Pakistan avoided external financial assistance. He also said sixteen new IPOs are expected next year.