Export-led growth is the way forward for Pakistan, says PM Shehbaz

Prime Minister Shehbaz Sharif on Wednesday said that export-led growth was the only way forward for Pakistan.

The premier made the remarks while addressing a breakfast event held on the sidelines of the World Economic Forum (WEF) in Pakistan.

In his remarks, the premier said Pakistan “is moving forward with a sense of achievement and a sense of purpose”, noting a drop in the inflation rate and a reduction in the policy rate.

However, he noted that exports were facing challenges and that social indicators “need to be improved through continuous joint efforts”.

“Our exports, collectively, do face different kinds of challenges,” the premier noted. “But the way forward is very clear: Pakistan has to have export-led growth,” he asserted.

PM Shehbaz said that the government brought in “fundamental structural changes” to the system, such as digitalising revenue collection. He stated that the tax collection-to-GDP ratio stood at 10.5pc, compared to 9pc two years ago, hailing it as a “significant achievement”.

“We are now in the mines and minerals business in a big way,” PM Shehbaz added, citing agreements and memoranda of understanding with American and Chinese companies.

“Pakistan has been blessed with infinite natural resources still buried in the heap of mountains in the north of Pakistan, in Gilgit-Baltistan, Azad Jammu and Kashmir, Khyber Pakhtunkhwa and Balochistan,” he said.

He added that Pakistan was “moving speedily” in the fields of cryptocurrency, artificial intelligence and information technology (IT).

“Our IT exports have shown remarkable progress in the last few years, in that we brought a lot of instruments which have facilitated IT exports, which stand at $3bn annually,” he said.

In terms of the youth, PM Shehbaz said that the federal and provincial governments had enacted many programmes to empower the youth through vocational training.

“As a result, our youth [are] getting productive employment in Gulf states and other parts of the world because they are highly qualified and highly trained,” he emphasised.

PM Shehbaz then touched on improving relations with the United States, expressing the hope that Islamabad and Washington would “cooperate with each other in a big way” in the fields of mines and minerals, counter-terrorism, IT and AI.

“I think Pakistan is at a point in time where we are going to take off rapidly in agriculture, industry, the mining industry, AI and IT,” the prime minister said. “I think that the future is very promising, I have no doubt about it.”

IMF’s Georgieva acknowledges Pakistan’s reform efforts

Earlier, PM Shehbaz had met International Monetary Fund (IMF) Managing Director Kristalina Georgieva on the sidelines of the WEF.

According to the Prime Minister’s Office (PMO), PM Shehbaz briefed Georgieva on the improvement in Pakistan’s macroeconomic indicators, stabilisation efforts and progress on institutional reforms.

He stressed Pakistan’s commitment to fiscal discipline, revenue mobilisation and sustainable development, the statement said.

The IMF official acknowledged and appreciated Pakistan’s reform efforts, the statement said. She stressed the importance of maintaining the momentum of reforms to ensure long-term economic resilience, it added.

The two sides discussed the global economic outlook, challenges faced by emerging economies and the importance of multilateral cooperation in safeguarding economic stability, it added.

Earlier, PM Shehbaz had also met Palestinian Prime Minister Mohammad Mustafa on the sidelines of the World Economic Forum in Davos.

According to the PMO, Mustafa expressed his heartfelt gratitude to PM Shehbaz for “Pakistan’s consistent, principled and unwavering support for the Palestinian people”.

“Mustafa personally walked up to PM Shehbaz and introduced himself,” the statement said.

“The Palestinian prime minister thanked Pakistan for supporting the Palestinian stance at international forums and for its role regarding the Palestinian cause,” it added.

The premier is on a three-day visit to the Swiss town (from January 20-22), primarily to lead a high-level delegation from Pakistan, including Deputy Prime Minister and Foreign Minister Ishaq Dar.

The premier arrived in Davos on Tuesday. In a post on X, PM Shehbaz wrote that he was visiting Davos to advance Pakistan’s engagement at the WEF with global trade and investment partners.

“Pakistan’s ongoing economic reform journey is unlocking profound opportunities, driven by a resilient and entrepreneurial workforce and significant potential across energy, agriculture, minerals, and emerging technologies,” PM Shehbaz said.

He added that Pakistan was “ready to harness this potential into mutually beneficial economic cooperation and long-term investment”.

Dar’s engagements

Meanwhile, Deputy Prime Minister and Foreign Minister Ishaq Dar inaugurated the Pathfinder Group’s Pakistan Pavilion on the sidelines of the WEF Annual Meeting in Davos, according to a post by the Foreign Office on X.

The foreign minister lauded the initiative to showcase Pakistan’s vast economic potential and emerging opportunities on a global platform, while highlighting the dynamism and innovation of the country’s start-ups.

He underscored the critical role of start-ups in advancing socio-economic development and driving innovation across diverse sectors.

FM Dar reaffirmed the government’s commitment to facilitating and promoting entrepreneurs and start-ups, particularly those led by youth, to fully realise the economic potential.

In another post on X by the FO, the foreign minister met his Canadian counterpart Anita Anand on the sidelines of the WEF 2026 meeting.

The two foreign ministers “agreed to explore ways to enhance Pakistan-Canada ties” and “discussed to upscale and strengthen economic and trade relations”, the social media post said.